Thailand Faces $25.8B Revenue Hit as US Tariffs Spark Industry Concerns

The FTI President, Kriangkrai Thiennukul, stated that sectors within Thailand anticipated to suffer most from the proposed tax hikes encompass auto manufacturing, food production, plastics, chemicals, steelworks, aluminum processing, textiles, electronic goods, and machinery.

The Federation of Thai Industries (FTI) estimates that Thailand might face approximately 900 billion baht (around $25.8 billion) in potential revenue losses due to the U.S. government’s implementation of retaliatory tariffs at a rate of 36% on Thai goods exported to the United States.

The FTI President, Kriangkrai Thiennukul, stated that the industrial sectors in Thailand anticipated to suffer the most impact The tax hikes encompass sectors such as automobiles, food products, plastics, chemicals, steel, aluminum, textiles, electronics, and machinery.

Visitors stroll by the Grand Palace in Bangkok, Thailand. Image captured by Reuters.

He stated that for the automotive sector, Thailand now encounters a 25% tariff, which came into effect in March. Additionally, should a retaliatory 36% tariff be implemented, automobile makers, especially those producing motorcycles, might consider shifting their manufacturing operations out of Thailand.

The food sector will face direct impacts, notably processed foods and seafood—currently excluded—from the moment the 36% tariff comes into play, he explained, noting that this would diminish Thailand’s competitive edge.

Shipments of chemicals to the United States, which currently amount to roughly $2 billion, are anticipated to decline. Additionally, U.S. purchasers might turn away from Thai textiles because of higher expenses resulting from the 36% tariff, according to Kriangkrai.

The FTI has suggested that the administration should accelerates negotiations Along with the U.S. administration, they aim to reduce import duties on American goods like corn, canned tuna, and beef. Additionally, they are contemplating the issuance of origin certificates for Thai-made items including hard drives and solar panels.

Kriangkrai also stated that the administration needs to take strong measures against the violation of intellectual property rights and the influx of inexpensive goods flooding the Thai market.