Thailand may lose up to $10.7 billion from potential US tariffs, says official
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Thailand wants to avoid US tariffs and has said it would try to increase imports of corn, soybeans, crude and ethane to narrow its trade surplus with the US.
PHOTO: EPA-EFE
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BANGKOK – Thailand could suffer a US$7 billion (S$9.4 billion) to US$8 billion export loss from potential US tariffs if the US administration were to even up levies between the two countries, but it has a strategy for trade negotiations, senior officials said on April 2.
Thai semiconductor exports may face tariffs of 25 per cent from the US, top commerce ministry official Vuttikrai Leewiraphan said ahead of US President Donald Trump’s planned announcement of new trade barriers.
“Thailand collects tariffs of about 11 per cent higher than the US in agriculture and industrial,” Mr Vuttikrai said.
“So if we are hit with 11 per cent more, we could see losses of about US$7 billion to US$8 billion.”
Thailand wants to avoid US tariffs and has said it would try to increase imports of corn, soybeans, crude and ethane to narrow its trade surplus with the US. Exports are a key driver for South-east Asia’s second-largest economy.
The US has put its deficit with Thailand at US$45.6 billion.
Mr Vuttikrai said Thailand is also considering importing US beef and liquor, as well as reducing tariffs on US products.
“Importing (goods) or reducing tariffs alone will not be enough. We will consider every dimension and every way possible,” he said. The government will seek help from Thai Airways in buying or leasing aircraft from the US, he added.
Thailand is aiming to reduce its trade surplus with the US to US$20 billion by importing more US products but has given no timeframe for the reduction.
The US was Thailand’s largest export market in 2024, accounting for 18.3 per cent of total shipments, or US$54.96 billion, of which 20 per cent were shipped by US companies in Thailand, according to Mr Vuttikrai.
Thai foreign ministry official Sirilak Niyom said Thailand was ready for trade negotiations, and noted that Thai companies had invested US$17 billion in the US across the food, real estate and auto parts sector, and employed 11,000 people. REUTERS
