Will a Biden presidency reverse the fortunes of Thailand’s export economy?

Thai Business News

Will a Biden presidency reverse the fortunes of Thailand’s export economy?
Thai Business Box

Will a Biden presidency reverse the fortunes of Thailand’s export economy?

Written By - Thai Business Box.

President Trump testing positive with Covid and hospitalised has thrown the US elections into a turmoil.

With just 32 days to go before the US presidential election, President Trump now has to curtail his campaign rallies and debates making it a much tougher task to close the gap of Democrat Joe Biden’s lead in national polls and advantage in key  swing sates.

The probability of a Democrat win led by Biden now has increased exponentially.

President Trump’s trade and tariff war against China has  severely impacted Thai exports, which are part of the supply chains of Chinese exports .

Will a Biden presidency reverse the fortunes of our export sector?

Although it is  true, that the only foreign policy issue on which Republicans and Democrats largely agree on is a tough stance on China, Biden’s approach is likely to differ from Trump’s.

In the past as Obama’s vice president, Biden has favoured a less confrontational approach relying on closer ties with global alliances and multinational bodies to put political and economical pressure on China.

Believing that trade policy is not the only component to America’s rivalry with the Asian giant, Biden had said, to compete with China, America needs to sharpen its own innovative edge and focus on its own intellectual and physical infrastructure and broad band technologies. 

In August this year, Biden said he would remove Donald Trump’s tariffs on imports from China, which he argued that the unilateral approach of levying tariffs on China has not worked, while US manufacturing has gone into a recession and agriculture lost  billions of dollars that taxpayers had to pay. However, his aide did walked back Biden’s statement and asserted the ex vice president would reevaluate the tariffs upon taking office.

Although Biden may not find it easy to end Trump’s tariff policies, he is unlikely to make tariffs on Chinese imports the central focus leaning more towards a multilateral approach, including working through the World Trade Organisation.

If Biden is successful, we may seen the return of a more familiar world and American policy, an easing out of global trade tensions and a recovery in Thailand’s exports sector.