Thailand could face an export loss of between $7 billion (S$9.4 billion) and $8 billion if the U.S. enacts tariffs to equalize levies between the two countries, senior officials announced on April 2.
According to Vuttikrai Leewiraphan, a top official from Thailand’s commerce ministry, the U.S. may impose tariffs of 25% on Thai semiconductor exports as part of President Donald Trump’s upcoming announcement of new trade barriers.
“Thailand currently imposes tariffs approximately 11% higher than those of the U.S. on agricultural and industrial goods,” Vuttikrai explained. “If we are subjected to an additional 11% tariff, the potential losses could reach $7 billion to $8 billion.”
In an effort to mitigate the impact of U.S. tariffs, Thailand is looking to increase its imports of corn, soybeans, crude oil, and ethane to help narrow its trade surplus with the U.S. Export activities are critical for South-East Asia’s second-largest economy.
The U.S. has reported a trade deficit with Thailand of about $45.6 billion. Vuttikrai added that Thailand is also considering importing U.S. beef and liquor, while also exploring options to reduce tariffs on American products. “Importing goods or reducing tariffs alone won’t suffice; we are evaluating all possible avenues,” he stated. The government plans to collaborate with Thai Airways for purchasing or leasing U.S. aircraft as part of this strategy.
Thailand aims to lower its trade surplus with the U.S. to $20 billion by increasing imports, but no specific timeline for this goal has been provided. The U.S. remains Thailand’s largest export market, making up 18.3% of total shipments, valued at around $54.96 billion, with 20% of these exports originating from U.S. companies based in Thailand, according to Vuttikrai.
Sirilak Niyom, an official from Thailand’s foreign ministry, stated that the country is prepared for trade negotiations and noted that Thai companies have invested $17 billion in the United States across sectors such as food, real estate, and auto parts, providing employment for 11,000 people in the U.S.
Credit: Straits Times
