Thai Cabinet Approves $4.7 Billion Funding to Counter US Tariff Impact

Thailand's cabinet has reallocated 157 billion baht ($4.7 billion) originally designated for a consumer stimulus "digital wallet" scheme to fund projects aimed at mitigating the economic impact of impending U.S. tariffs, which could reach 36% if a moratorium expires in July. The redirected funds will support infrastructure development in water management, transport, and logistics, tourism promotion, soft loans for small businesses, and measures to preserve employment and enhance productivity. Prime Minister Paetongtarn Shinawatra emphasized that the digital wallet program has not been canceled but is being reviewed to optimize economic stimulus. The budget bill for 2026, which includes further support measures and projects to be approved by September, anticipates a slight spending increase and a reduced deficit, reflecting concerns over slower economic growth, with forecasts downgraded to 1.3%-2.3% due to tariffs. Finance Minister Pichai Chunhavajira stated Thailand's desire for a fair trading relationship with the United States amid these challenges. The government aims to accelerate spending in the third quarter to counter the expected economic impact in the latter half of the year.