Thailand Faces $8 Billion Export Loss Amid U.S. Tariff Threat: What’s Next?

BANGKOK – In a recent statement, Thai officials warned that the nation could face staggering losses of up to $8 billion in exports due to potential tariffs imposed by the United States. If the U.S. administration proceeds to adjust levies to balance trade with Thailand, the impact could be devastating, particularly for key sectors such as semiconductors.

Vuttikrai Leewiraphan, a senior official from Thailand's commerce ministry, highlighted that U.S. tariffs could reach as high as 25% on Thai semiconductor exports. He emphasized that Thailand currently imposes duties that are approximately 11% higher than those of the United States on both agriculture and industrial products. "A potential increase of 11% in tariffs could result in export losses ranging from $7 billion to $8 billion," he stated.

To counter this looming threat, Thailand is actively strategizing to mitigate the effects of these tariffs. Officials plan to increase imports of essential commodities such as corn and soybeans, as well as crude oil and ethane, in an effort to decrease its substantial trade surplus with the U.S., which is currently estimated at $45.6 billion. In a bid to also foster a stronger trading relationship, Thailand is now considering the importation of U.S. beef and liquor, as well as exploring options to lower tariffs on American goods.

But that's not all; Vuttikrai also mentioned a collaboration with Thai Airways to facilitate the purchase or lease of American aircraft, further solidifying economic ties with the United States. By continuing to expand imports, Thailand aims to reduce its trade surplus to $20 billion, although no specific timeline has been established for this goal.

In 2024, the United States was Thailand's largest export market, comprising 18.3% of total shipments, which equated to an impressive $54.96 billion. Moreover, it's noteworthy that 20% of this figure came from goods shipped by U.S. companies operating within Thailand.

Sirilak Niyom, another foreign ministry official, assured that Thailand is fully prepared for trade negotiations and stressed the investment potential that Thai companies have in the U.S. – amounting to $17 billion across diverse sectors like food, real estate, and auto parts, creating approximately 11,000 jobs for the American workforce.

As tensions mount, Thailand works urgently to safeguard its economic interests. The unfolding trade scenario could reshape the landscape of U.S.-Thai relations, and all eyes are now set on the forthcoming negotiations. Will Thailand develop a breakthrough strategy, or face repercussions from intensified tariffs? Stay tuned for more updates on this evolving story!