Thai Industries Brace for Billion-Baht Losses as US Tariffs Bite

Federation of Thai Industries warns of severe impact across key sectors, urging swift government action and trade negotiations

 

Thai industries are facing the prospect of losses estimated between 800 and 900 billion baht following the United States' decision to impose steep tariffs, the Federation of Thai Industries (FTI) has warned.

 

The sudden increase, which sees Thailand facing a 36% levy on certain exports, has shocked the sector, particularly given the ongoing economic uncertainties.

 

FTI chairman, Kriengkrai Thiennukul, expressed deep concern over the "reciprocal tariffs" announced by the US, highlighting the critical role of the US market in Thailand's export-driven economy.

 

He revealed that the FTI has convened urgent discussions with affected industries to develop strategies to mitigate the damage.

 

Key sectors facing significant challenges include automotive, food processing, and plastics & chemicals. The elevated tariffs threaten to undermine the competitiveness of Thai products in the US market.

 

The automotive sector, already facing a 25% tariff since March 2025, risks losing investment as manufacturers reconsider production bases.


  

The motorcycle industry, a significant Thai export, faces increased competition. The food processing sector, particularly processed seafood, is reeling from a tariff surge from 0% to 36%.

 

The plastics industry, valued at 5-6 billion US dollars, and the chemical industry, exporting 2 billion US dollars to the US, face substantial market share losses.

 

Other affected sectors include machinery and industrial equipment, textiles, and iron and aluminium, all grappling with increased costs and reduced competitiveness. Conversely, the footwear industry may see a competitive advantage due to higher tariffs imposed on rivals.

 

The FTI has proposed several countermeasures, including negotiating a balanced trade agreement with the US, amending Thai import laws to facilitate US imports, implementing robust certification of origin measures, and reviewing existing tariffs and non-tariff barriers.

  


"The government must urgently engage in negotiations with the US, addressing not only the trade imbalance but also intellectual property concerns and preventing import dumping," Kriengkrai emphasised.


 

The FTI will compile detailed impact assessments from each sector to present a unified strategy to the Thai government. Preliminary talks between the public and private sectors have explored potential trade-offs with the US, including increased imports of agricultural products like corn and even military equipment.

(2025/04/08-00:00)