Thailand will allocate 18.5 billion baht ($572 million) for economic stimulus to offset the impact of U.S. tariffs and provide compensation to families of those killed in last month’s border conflict, officials announced on Tuesday.
The stimulus measures approved by the cabinet are aimed at enhancing economic competitiveness and supporting student loans, Deputy Finance Minister Julapun Amornvivat told reporters.
The government still has about 25 billion baht of funds to use to mitigate the impact of U.S. tariffs and for broader relief efforts, Julapun said.
The U.S. last week set a 19% tariff on imported goods from Thailand, lower than the 36% rate announced earlier this year and more aligned with other countries in the region.
Julapun said the cabinet gave the government approval to prepare a joint statement on tariffs and trade with the United States, but said discussions were ongoing and there was no set signing date.
On Tuesday, the University of the Thai Chamber of Commerce said it expected the economy to grow 1.7% this year. That is below both the finance ministry’s revised forecast of 2.2% growth in 2025 and last year’s actual growth of 2.5%.
Compensation Package
The cabinet also approved a 10 million baht ($310,000) payment to the families of government officials who died in the July conflict with Cambodia, while those injured will receive up to 1 million baht, government spokesperson Jirayu Huangsap told a briefing.
Families of Thai civilians who died during the conflict will each receive a payment of 8 million baht, he said, while the injured would receive up to 800,000 baht.
Thailand and Cambodia held preliminary defence talks in Malaysia on Monday, ahead of a key ministerial meeting on Thursday, as a fragile ceasefire holds.
The ceasefire, which came after five days of border clashes between Cambodia and Thailand, was reached last Monday following a push by Malaysia and phone calls from U.S. President Donald Trump, who threatened to hold off tariff negotiations with both countries until fighting stopped, with China also observing.
The worst fighting between the Southeast Asian neighbours in over a decade included exchanges of artillery fire and jet fighter sorties, claiming at least 43 lives and leaving over 300,000 people displaced on both sides of the border.
The ministers of defence of both countries are due to hold a meeting of the General Border Committee to discuss how to maintain the ceasefire, authorities on both sides said.
The Thursday meeting will be observed by representatives from the United States, China and Malaysia.
($1 = 32.35 baht)
(With inputs from Reuters)
