THE US-CHINA TRADE WAR AND ITS IMPACT ON THAILAND’S ECONOMY

Abstract

This paper analyzes the economic consequences of the trade war ongoing between the USA and China as applied to Thailand. The paper mainly focuses on the relationship between the global tariffs’ imposition during this US-China trade war as they directly hit several Thai export products as well as the US-China trade war impact on Thai business via dumping goods into Thailand and Thai products intermediately affected by the tariffs imposed on Chinese or US goods. Recently, it has been illustrated by many researchers and economists that trade wars, especially between those waged between such large economies have adverse economic effects on the global economy and international trade. This paper utilizes PESTEL and also causes and consequences analysis to explain the trends of the US or China exports of goods and services to Thailand, Thai intermediate inputs indirectly affected by the tariffs imposed on Chinese or US goods and dumping goods into Thailand as the latter could intensify domestic competition.