Thai Auto Industry Braces for Impact of Potential US Tariffs

[snoop1130]

Photo via Kasikorn Research Centre

 

The Thai automotive sector could face significant challenges if US President Donald Trump implements proposed tariffs on car imports. The Federation of Thai Industries (FTI) warns that Trump's plan for a 25% tariff, effective from April 2, may disrupt Thailand's export momentum.

 

While some US carmakers with operations in Canada and Mexico are exempt until later, Thai manufacturers, ranked as the 16th largest passenger car exporter and 11th for commercial vehicles to the US, are concerned. Last year, Thailand exported 42,000 passenger cars and 20 commercial motor vehicles (CMVs) to the US.

 

Kriengkrai Thiennukul, FTI Chairman, cautioned that these tariffs might slow down both passenger car and CMV exports, exacerbating Thailand's automotive industry's woes. In 2024, the US, importing cars worth US$267 billion, drew substantial exports from Thailand. If applied, the tariffs could further strain this struggling sector.

 

 

The local market is not faring better, with vehicle sales dropping over 12% year-on-year in January due to high household debt affecting loan approvals. Similarly, vehicle exports reported a significant 28.3% plunge, marking a 33-month low, as stated by the FTI’s Automotive Industry Club.

 

Surapong Paisitpatanapong, Vice-Chairman of the FTI, pointed to Trump's tariff intentions and increased competition from cheaper Chinese vehicles as key issues behind the poor export figures. Moreover, Thai auto parts exporters express concern, particularly those supplying indirectly to Mexico via Japanese manufacturers.

 

As the Thai automotive industry braces for potential US tariff implications, the sector is closely monitoring policy developments while grappling with domestic and international market pressures, reported The Thaiger.

 

-- 2025-03-10

 

 

[smedly]

what tarrifs does Thailand apply on vehicle imports ?

 

it is a lot more than 25%

[Digitalbanana]

The bigger concern is about the potential loss of goodwill and trust from the international community due to un-kept promises and inconsistent actions, which they believe is the real risk from the current trade situation. This could lead to a level of disgust and distrust towards the US that was previously unimaginable, and could have serious consequences. Goodwill is something that cannot be bought with money and currently the US is losing it all over the world.

[dinsdale]

Well let's see if it's like for like if so US tariffs on cars produced in Thailand will be 300%.

[CallumWK]

18 minutes ago, smedly said:

what tarrifs does Thailand apply on vehicle imports ?

 

it is a lot more than 25%

 

This is about steel tariffs, which will add to the manufacturing costs