What Does a Trump or Biden Win Mean For Thailand’s Economy Short-Term?

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What Does a Trump or Biden Win Mean For Thailand’s Economy Short-Term?

What Does a Trump or Biden Win Mean For Thailand’s Economy Short-Term?

Written By - Thai Business Box. 03-11-2020.

Whoever wins, the economics effects of the election results will not be felt globally for quite some time as both parties would need to focus inward.

The election comes in the middle of a global pandemic of which the US has been hit severely both in terms of number of Covid cases and the economy. Any government will face enormous challenges, including containing the Covid-19 panademic, which has claimed 230 thousand lives and brought in the country’s worst economic crises since the Great Depression of 1930s.

The winning party would have their hands full domestically and it can be argued that whoever wins, it would be “America First”, with global policies taking a backseat.

However, the US trade policy is one policy that sooner or later would effect Thai economy .

The current Trump administration will surely demonstrate the same momentum of its trade tariffs policy on China or maybe we would even see a possible escalation which does not bode well for Thailand’s exports. Continue reading Below...

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On the other hand, Joe Biden has a history of supporting free trade and has described tariffs imposed by Trump as ‘damaging’, ‘reckless’ and ‘disastrous’. However, Biden may not be able to reverse his policies either as he would not want to come out looking soft on China, in the current political environment where the US-China trade war enjoys public support. Besides, Biden would be anxious to dispel doubts about his son’s reportedly close links with the Chinese leadership.

So, we can expect a continuation of protectionist trade policies, regardless of who is elected.

In fact, in the longer term, through the recovery of previous agreements abandoned by Trump, Biden could escalate regional geopolitical tensions, putting Thailand in a precarious balancing act position.

Biden has pledged to “unite the economic might of democracies around the world to counter abusive economic practices” rather than escalate trade war tariffs as a countermeasure to China.