Thailand may lose $25.8B in revenue due to US tariffs: industries federation

The Federation of Thai Industries (FTI) has estimated that Thailand could suffer an estimated 900 billion baht (US$25.8 billion) revenue loss from the U.S. administration’s imposition of 36% reciprocal tariffs on Thai exports to the U.S.

FTI President Kriangkrai Thiennukul said that the Thai industries expected to be hardest hit by the tax increases include automotive, food, plastic, chemical, steel, aluminium, textile, electronics and machinery.

Tourists walk past the Grand Palace in Bangkok, Thailand. Photo by Reuters

For the automotive industry, he said Thailand is currently facing a 25% tariff, imposed since March, and, if a 36% reciprocal tariff is added, car manufacturers, particularly motorcycle producers, may relocate their production away from Thailand.

The food industry will be directly affected, particularly processed food and seafood, which are currently exempt, when the 36% tariff is imposed, he said, adding that this will reduce Thailand’s competitiveness.

Exports of chemicals to the U.S., currently valued at about US$2 billion, are expected to fall, while U.S. buyers may reject Thai textiles, due to increased costs incurred from the 36% tariff, said Kriangkrai.

The FTI has proposed that the government accelerates negotiations with the U.S. administration, to cut import taxes for U.S. products, such as maize, tuna fish and meat, and considers issuing certificates of origin for products manufactured in Thailand, such as hard discs and solar cells.

Kriangkrai further said that the government should make serious efforts to tackle the problem of infringement of intellectual property and market dumping of cheap products into Thailand.