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

[spidermike007]

The deranged Trump policies continue to wreak havoc around the world. Even his own supporters are getting tired of his nonsense, and the Dow dropping substantially is Wall Street and the economy's way of slapping around this giant fool. 

 

A wave of frustration over prolonged inflation helped power Trump to victory in November, and a majority of respondents -- 58% -- said inflation would be a major factor in deciding their vote in future elections. But just 32% approved of the job Trump was doing on inflation.

Views of the economy by households deteriorated this month to the lowest level in over a year, according to a widely followed survey by the University of Michigan.

 

"He's just rushing a little bit. I think the whole thing with the DOGE is being rushed a little bit," said Gerald Dunn, a Republican 66-year-old martial arts instructor from Staatsburg, in New York State's Hudson Valley. "I like what he is doing but I think a lot of what he says is just BS. When he starts talking about annexing Greenland and annexing Canada, you know that's just smoke."

 

"I struggle with things like picking a fight with Canada. Why are we picking a fight with Canada?" said Todd Wellman, a 49-year-old Republican from Indianapolis, who said he wrote in now-Vice President JD Vance as his choice for president in November.

 

https://www.reuters.com/world/us/trump-gets-middling-grades-americans-top-issues-reutersipsos-poll-finds-2025-02-23/

 

 

 

 

[spidermike007]

Trump lies when he says other nations will pay for them. He lies when he says companies will pay for them. Consumers will pay, so it becomes a tax. Be bold Don and for once be honest. It is a tax hike. And it WILL slow down the economy and result in a massive loss of jobs, and major inflation. This is very dumb policy. 

[gargamon]

25 minutes ago, spidermike007 said:

Trump lies when he says other nations will pay for them. He lies when he says companies will pay for them. Consumers will pay, so it becomes a tax. Be bold Don and for once be honest. It is a tax hike. And it WILL slow down the economy and result in a massive loss of jobs, and major inflation. This is very dumb policy. 

It's a consumption tax. Since the poor spend all of their money consuming, it will cost them more. The rich spend a much smaller percentage on day to day stuff so the impact will be much less on them. 

[Yagoda]

14 minutes ago, spidermike007 said:

The deranged Trump policies continue to wreak havoc around the world. Even his own supporters are getting tired of his nonsense, and the Dow dropping substantially is Wall Street and the economy's way of slapping around this giant fool. 

 

A wave of frustration over prolonged inflation helped power Trump to victory in November, and a majority of respondents -- 58% -- said inflation would be a major factor in deciding their vote in future elections. But just 32% approved of the job Trump was doing on inflation.

Views of the economy by households deteriorated this month to the lowest level in over a year, according to a widely followed survey by the University of Michigan.

 

"He's just rushing a little bit. I think the whole thing with the DOGE is being rushed a little bit," said Gerald Dunn, a Republican 66-year-old martial arts instructor from Staatsburg, in New York State's Hudson Valley. "I like what he is doing but I think a lot of what he says is just BS. When he starts talking about annexing Greenland and annexing Canada, you know that's just smoke."

 

"I struggle with things like picking a fight with Canada. Why are we picking a fight with Canada?" said Todd Wellman, a 49-year-old Republican from Indianapolis, who said he wrote in now-Vice President JD Vance as his choice for president in November.

 

https://www.reuters.com/world/us/trump-gets-middling-grades-americans-top-issues-reutersipsos-poll-finds-2025-02-23/

 

 

 

 

 

11 minutes ago, spidermike007 said:

Trump lies when he says other nations will pay for them. He lies when he says companies will pay for them. Consumers will pay, so it becomes a tax. Be bold Don and for once be honest. It is a tax hike. And it WILL slow down the economy and result in a massive loss of jobs, and major inflation. This is very dumb policy. 

There is insane spittle flying.

 

[Yagoda]

12 hours ago, dinsdale said:

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

Tarrifs should be equal in all directions.

 

Thats the best part about all this screeching paroxysmic freakout Trump frenzy. They dont want to play "fair". They want to keep LEECHING off us. 

[gargamon]

13 minutes ago, Yagoda said:

 

There is insane spittle flying.

 

Yes, out of your mouth.

[gargamon]

17 minutes ago, Yagoda said:

Tarrifs should be equal in all directions.

 

Thats the best part about all this screeching paroxysmic freakout Trump frenzy. They dont want to play "fair". They want to keep LEECHING off us. 

Tell me how abiding by Trump's free trade agreement is leeching?

https://ustr.gov/trade-agreements/free-trade-agreements/united-states-mexico-canada-agreement

https://ustr.gov/themes/custom/ustr2021/images/ustrlogo_dark.png

 

•  Free Trade Agreements

Breadcrumb

• Trade Agreements 
•  Free Trade Agreements 
•  United States-Mexico-Canada Agreement

United States-Mexico-Canada Agreement

 

The United States-Mexico-Canada Agreement (USMCA) entered into force on July 1, 2020. The USMCA, which substituted the North America Free Trade Agreement (NAFTA) is a mutually beneficial win for North American workers, farmers, ranchers, and businesses. The Agreement creates more balanced, reciprocal trade supporting high-paying jobs for Americans and grow the North American economy.

Agreement highlights include:

•   Creating a more level playing field for American workers, including improved rules of origin for automobiles, trucks, other products, and disciplines on currency manipulation.

•  Benefiting American farmers, ranchers, and agribusinesses by modernizing and strengthening food and agriculture trade in North America.

•   Supporting a 21st Century economy through new protections for U.S. intellectual property, and ensuring opportunities for trade in U.S. services.

•   New chapters covering Digital Trade, Anticorruption, and Good Regulatory Practices, as well as a chapter devoted to ensuring that Small and Medium Sized Enterprises benefit from the Agreement.

To view the full text of the agreement between the United States, Mexico and Canada, click here.

[Yagoda]

24 minutes ago, gargamon said:

Yes, out of your mouth.

Wow, Im totally chastened by the depth of your argument.

19 minutes ago, gargamon said:

Tell me how abiding by Trump's free trade agreement is leeching?

https://ustr.gov/trade-agreements/free-trade-agreements/united-states-mexico-canada-agreement

https://ustr.gov/themes/custom/ustr2021/images/ustrlogo_dark.png

 

•  Free Trade Agreements

Breadcrumb

• Trade Agreements 
•  Free Trade Agreements 
•  United States-Mexico-Canada Agreement

United States-Mexico-Canada Agreement

 

The United States-Mexico-Canada Agreement (USMCA) entered into force on July 1, 2020. The USMCA, which substituted the North America Free Trade Agreement (NAFTA) is a mutually beneficial win for North American workers, farmers, ranchers, and businesses. The Agreement creates more balanced, reciprocal trade supporting high-paying jobs for Americans and grow the North American economy.

Agreement highlights include:

•   Creating a more level playing field for American workers, including improved rules of origin for automobiles, trucks, other products, and disciplines on currency manipulation.

•  Benefiting American farmers, ranchers, and agribusinesses by modernizing and strengthening food and agriculture trade in North America.

•   Supporting a 21st Century economy through new protections for U.S. intellectual property, and ensuring opportunities for trade in U.S. services.

•   New chapters covering Digital Trade, Anticorruption, and Good Regulatory Practices, as well as a chapter devoted to ensuring that Small and Medium Sized Enterprises benefit from the Agreement.

To view the full text of the agreement between the United States, Mexico and Canada, click here.

So Tariffs should not be equal between nations is what you are saying?

[PETERTHEEATER]

13 hours ago, smedly said:

what tarrifs does Thailand apply on vehicle imports ?

 

it is a lot more than 25%

Is it really a tarrif? The Thai payment is Import Duty + Customs Duty + Tax combination totalling up to 200% of the vehicles value. I would ask Joe Ferrari but he's indisposed.

[hotchilli]

13 hours ago, dinsdale said:

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

It should be...where auot's are concerned, what's good for the goose is good for the gander..

See how Thailand likes being screwed.

Then take a look at other products, especially food, maybe USA will put a luxury tax on Thai imports

[gargamon]

40 minutes ago, Yagoda said:

Wow, Im totally chastened by the depth of your argument.

So Tariffs should not be equal between nations is what you are saying?

Tarrifs should be non-existent. Please do show some examples of how Canada/Mexico violated Trump's free trade act. Doubt you can come up with anything but a shallow retort.

[Yagoda]

11 minutes ago, gargamon said:

Tarrifs should be non-existent. Please do show some examples of how Canada/Mexico violated Trump's free trade act. Doubt you can come up with anything but a shallow retort.

Who cares? If an agreement is working, rip it up. You charge me, Ill charge you. Mexico is a failed state that leeches off of us and kills our people and Canada is a defenseless wilderness that pretends to be an independent country.

 

 

 

 

[billd766]

2 hours ago, spidermike007 said:

Trump lies when he says other nations will pay for them. He lies when he says companies will pay for them. Consumers will pay, so it becomes a tax. Be bold Don and for once be honest. It is a tax hike. And it WILL slow down the economy and result in a massive loss of jobs, and major inflation. This is very dumb policy. 

The sad thing is that many of Trump's supporters in the USA still believe him, and sadder than that, some posters on AN believe in every word he says as well.

[transam]

1 minute ago, billd766 said:

The sad thing is that many of Trump's supporters in the USA still believe him, and sadder than that, some posters on AN believe in every word he says as well.

That's a fact........

[spidermike007]

10 minutes ago, billd766 said:

The sad thing is that many of Trump's supporters in the USA still believe him, and sadder than that, some posters on AN believe in every word he says as well.

With many people, once they got attached to a theory, it was hard to get them detached. They’d screen out unhelpful facts, invent favorable ones, and ignore contradictions in their own claims. Look at those Sandy Hook, multiple fraud convictions, and Jan. 6th truthers, babbling about false flags and crisis actors and all the rest. When people were motivated enough to believe something, they were going to believe it no matter what. There was no such thing as a bridge too far.

 

[gargamon]

13 minutes ago, spidermike007 said:

With many people, once they got attached to a theory, it was hard to get them detached. They’d screen out unhelpful facts, invent favorable ones, and ignore contradictions in their own claims. 

 

Are you talking about religion(all types)?

[NoMoonLogistics]

2 hours ago, PETERTHEEATER said:

Is it really a tarrif? The Thai payment is Import Duty + Customs Duty + Tax combination totalling up to 200% of the vehicles value. I would ask Joe Ferrari but he's indisposed.

No - Joe is disposed.

[Ralf001]

15 hours ago, smedly said:

what tarrifs does Thailand apply on vehicle imports ?

 

it is a lot more than 25%

80% impot tax.

[spidermike007]

1 hour ago, gargamon said:

Are you talking about religion(all types)?

Isn't MAGA a religion, and Trump the spiritual master? 

[gargamon]

23 minutes ago, spidermike007 said:

Isn't MAGA a religion, and Trump the spiritual master? 

Same as the Moonie's, the Jamestown bunch, Christians, Mormons, etc.

 

I do wish they'd drink the Kool aid and get it over with.

[Patong2021]

17 hours ago, Digitalbanana said:

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.

 

Losing?

It is lost and won't be regained any time soon. Trump did this last time and Biden spent his term trying to rebuild bridges only to have Mr. Chaos burn them again. No one is going to trust the USA again for a long time.

[impulse]

Looking just at the trade imbalance and the fact that I can't buy a new ZR1 Corvette in Thailand for anywhere near 125% of what it would cost me in the USA, Thailand is right to be nervous. 

 

It's time for reciprocal tariffs and a level playing field for US manufacturers.

 

Not that I'm in the market for a ZR1, but if the doctors gave me a year to live, I'd like that option.

 

[NoMoonLogistics]

Australia has a trade deficit with the USA.

They have supported - with blood - every wild foreign adventure and resultant defeat in the past 75 years.

They have zero tarriffs against US products.

 

Reciprical?

 

They are going to get slugged with Trumps tarriffs.

 

Thanks America. Spit.

You have no honour. You have no memory. And soon you will have no friends.