Trump Tariff Turmoil: Thai Car Market Skids to a Halt

[webfact]

Picture courtesy of automoblog

 

The wheels of Thailand's car industry are grinding slower as President Trump mulls harsh tariffs on imported vehicles. The proposed 25% levy, expected from April 2, has spread a chilling effect across global car markets.

 

Key players are hesitating, with Surapong Paisitpatanapong from the Thai Federation of Industries noting a significant drop in orders for traditional petrol-powered cars. The landscape is murky: countries are holding back, waiting for more information on Trump's next move.

 

The impact is visible. Thai car exports dove by 8.34% in February, with only 81,323 units shipped. The year's start has been bleak, with a whopping 18.1% decline in exports, reaching a mere 143,644 cars.

 

Stricter emissions rules elsewhere are adding salt to the wound for Thailand’s automotive sector, adding further challenges in the market. As if exports weren't enough of a headache, the domestic scene looks equally grim.

 

 

 

February saw local sales dip by 6.68% as tighter lending rules curbed buyers' appetites, leaving the first two months of 2025 with a 9.53% dip in sales at just 97,395 cars. Manufacturers are therefore seeing ripple effects, with February's production slumping by 13.6%.

 

Optimistically, folks are pinning hopes on the ongoing Bangkok International Motor Show. Running until April 6, it’s seen as a lifeline with potential deals and discounts. Meanwhile, the government's 5-billion-baht loan initiative aimed at spurring SME pickups could jolt some life into the market.

 

Surapong is pushing for leniency, asking that non-financial bodies be given the green light to offer loans, hoping to revive the stalling market. While clouds gather over Thailand's automotive future, the coming months are pivotal.

 

All eyes are now on Trump’s looming decision, and until then, it's a waiting game. The industry anticipates that clearer directives will either slow down or fast-track a market recalibration. 

 

Based on a story by The Thaiger
 

-- 2025-03-26

 

 

[Tropicalevo]

I did not think that Thailand exported that many vehicles to the USA, but a quick scan on the internet surprised me.

$358 million last year.

 

https://tradingeconomics.com/thailand/exports/united-states/motor-cars-vehicles-transporting-persons

[dinsdale]

300% tariff on vehicles imported into Thailand. Not sure what the tariff is on Chinese cars but I'll be my left nut it's not 300%. 

[ozz1]

I could see this coming the Thai baht resisting change and it's tit for tat Thailand taxes vehicles at 300 percent is one factor and they don't like competition

[BritScot]

About time. I hope Trump hits thais rights to buy houses/own land in the USA and copies thai 51% rule for business owner as well. And I'm not an American!!! Thailand has got away with this abuse for far to long.