Thai Rice Crisis: Losing US to Vietnam Looms Over Thailand

[webfact]

File photo for reference only

 

Thai rice exporters are raising an alarm over potential losses in the US market, as Vietnam threatens to steal the spotlight with their cheaper rice.

 

The situation emerged after the US slapped a hefty 36% tariff on Thai imports, propelling the price of Thai Hom Mali fragrant rice to a potential ฿52,430 per tonne, up from its current range of approximately ฿33,720-฿37,460. Meanwhile, even with a 46% tariff, Vietnamese rice remains a more economical option at ฿22,480-฿26,220 per tonne.

 

Last year painted a contrasting picture, with Thailand exporting 850,000 tonnes of Hom Mali rice to the US compared to Vietnam's modest 40,000 tonnes. Fearful of a market shift, the president of the Thai Rice Exporters Association urges swift governmental intervention to negotiate these worrisome tariffs.

 

The urgency is underscored by the fact that US importers have already preempted the tariff hike, importing a significant 100,000 tonnes of Thai rice.

 

 

 

Deputy Leader Sirikanya Tansakul from the People’s Party indicated that this tariff escalation aims not just at balancing trade deficits but also nudging US investment back home.

 

The tariff repercussions could see Thailand’s GDP potentially shrink by over 1% if negotiations fail. A more optimistic outlook predicts a GDP reduction of 0.8% with a 25% tariff, or just 0.3% if cut to 10%.

 

Thai goods facing the brunt of increased tariffs include car tyres and electrical appliances, rounded off by communications kit.

 

Sirikanya issued a warning on potential hesitation or withdrawal of foreign investments amidst this tariff turmoil. She also noted the long-standing trade surplus enjoyed by US service-sector companies in Thailand, suggesting this sector may hold opportunities for offsetting the precarious tariff situation.

 

Based on a story by Thai PBS World
 

-- 2025-04-04

 

 

[JimHuaHin]

Slightly misleading, but - Viet Nam innovates, Thailand stagnates, stuck in a middle income trap of its own making.

 

Viet Nam today is very much different from the Viet Nam of 2-3 decades ago - Thailand is still basically the same.

[webfact]

Thailand's Hom Mali Rice Faces US Tariff Challenge Amidst Competitive Pressures

 

Photo courtesy of Vecteezy

 

Thailand's renowned Hom Mali fragrant rice is facing a significant challenge in the US market due to newly imposed reciprocal tariffs. The US has implemented a steep 36% tariff on Thai rice, increasing costs from approximately US$1,000 to US$1,400 per tonne, threatening its competitive edge against Vietnamese rice.

 

The Thai Rice Exporters Association expressed concerns that these tariffs could shift US importers' preferences towards Vietnamese rice, which, despite a higher 46% tariff, remains more affordable at US$600 to US$700 per tonne. This shift could weaken Thailand’s presence in the US market, where last year it exported 850,000 tonnes compared to Vietnam’s 40,000 tonnes.

 

Chukiat Opaswongse, President of Hom Mali, noted that US buyers have secured roughly 100,000 tonnes of Thai rice before the tariffs take full effect. However, he warned that the price gap would likely drive importers towards cheaper alternatives. He urged Thai authorities to support exporters by negotiating with the US to mitigate the effects of the tariffs.

 

 

This tariff issue isn't limited to rice. People’s Party Deputy Leader Sirikanya Tansakul emphasized that the US tariffs are part of a broader strategy to reduce its trade deficit and encourage domestic production. She warned that if left unaddressed, these tariffs could shrink Thailand’s GDP growth by over 1% but suggested this impact could be lessened with successful tariff negotiations.

 

Besides rice, other Thai exports like communications equipment, car tyres, and electrical appliances are also affected, potentially slowing foreign investment in the Thai market until stability returns. Sirikanya advised focusing on the service sector, where the US maintains a trade surplus with Thailand, to help cushion economic impacts.

 

As negotiations continue, the stakes for Thailand’s rice exporters—and its economy—remain high, with the need for strategic diplomatic efforts to stabilize the situation and preserve market share in the US, reported The Thaiger.

 

-- 2025-04-04

 

 

[ukrules]

Yeah nobody cares, when out shopping if the price has gone up by 50% they will just switch brand. No big deal.