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High Drama and Big Impact: Trump’s Bold Tariff Plans and What to Expect

Expect significant new tariffs on Chinese imports and moderate levies on goods from other nations , as President-elect Donald Trump rolls out his protectionist agenda. However, with his preference for chaotic policymaking and sudden shifts , there’s uncertainty on how soon these import taxes will actually hit. Dubbed “ Tariff Man ,” Trump aims to use tariffs both strategically and tactically . He’s mentioned taxing all Chinese goods up to 60% and potentially setting 10%-20% tariffs on imports globally , but details on these plans remain vague . Key players within Trump’s team are divided: Robert Lighthizer , a staunch tariff advocate, sees permanent duties as crucial to balance US trade , while others, like billionaires John Paulson and Scott Bessent , view tariffs as temporary leverage. Trump’s previous administration had mixed feelings, especially on national security-related trade limits , which he sometimes dismissed, favoring an “open for business” approach. High-profile busin

Thailand's Household Debt Declines Slightly Amid Tightened Lending and Economic Measures

Thailand's household debt has seen a minor reduction in the second quarter as banks implemented stricter lending practices to manage bad loans and borrowers stepped up debt repayments amidst the highest interest rates in a decade.

As of June, household debt, as a percentage of the country's Gross Domestic Product (GDP), stood at 89.6%, down from 90.7% in the previous quarter. This equates to a total liability of 16.32 trillion baht ($507 billion), slightly decreased from 16.36 trillion baht in the first quarter, according to data released by the Bank of Thailand.

More than 75% of this household debt is attributed to loans for personal consumption and mortgages.

Government Initiatives for Debt Restructuring

Prime Minister Paetongtarn Shinawatra has committed to implementing a comprehensive debt restructuring plan to address the ongoing household indebtedness as her new administration introduces measures aimed at stimulating Thailand’s sluggish economy. The central bank has highlighted the highest household debt levels in Southeast Asia as a key reason for maintaining interest rates at 2.5%, the highest level since 2013.

Since 2019, Thailand's household debt has surged nearly 20%, exacerbated by the economic fallout from the COVID-19 pandemic. To alleviate the burden, the government is distributing 10,000 baht in cash to approximately 14.5 million individuals who are poor or disabled, helping them cope with the rising cost of living.

Trends in Lending and Economic Impact

The slight decline in the debt ratio has been attributed to both loan repayments and a slowdown in credit growth among commercial banks. Chayawadee Chai-Anant, Assistant Governor of the Bank of Thailand, noted that a 2.3% GDP growth in the second quarter also contributed to reducing the debt ratio.

In response to rising defaults, Thai banks have adopted a more cautious approach to granting new loans, particularly for automobile financing. New loan growth decreased to 0.3% in the second quarter, down from 1.3% in the prior three months. The Bank of Thailand has also indicated concerns about a potential rise in non-performing loans as both small businesses and individual borrowers face challenges in meeting their repayment obligations.

As the government and central bank work to navigate these economic challenges, the focus remains on stabilizing household debt levels while fostering a more robust economic recovery.

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