Trump’s tariff threat stalls Thai car exports
Thailand’s car manufacturers are hitting the brakes on production as US President Donald Trump’s looming auto tariffs send shockwaves through global trade.
On March 24, Trump signalled his intent to slap fresh levies on imported vehicles, set to kick in from April 2, leaving Thailand’s key trading partners hesitant to place orders—especially for petrol-powered cars, said Surapong Paisitpatanapong, Vice-Chairman of the Federation of Thai Industries and spokesperson for its Automotive Industry Club.
“Many countries are waiting for a clearer tariff policy from Trump.”
The uncertainty has already driven exports down. In February, Thai car exports plummeted 8.34% year-on-year to 81,323 units, while the first two months of 2025 saw a staggering 18.1% drop, totalling 143,644 units.
Stricter carbon dioxide emission rules in some countries have added to the downturn, hitting Thailand’s auto sector hard, Surapong noted.
The domestic market isn’t faring any better. February’s car sales slid 6.68% year-on-year to 49,313 vehicles, as stricter lending rules left buyers struggling to secure loans. In the first two months of the year, sales slumped 9.53% to just 97,395 vehicles.
Manufacturers are feeling the pinch, with February’s total production down 13.6% year-on-year to 115,487 units, and a 19.3% drop in the first two months, totalling 222,590 units.
Hopes now rest on the 46th Bangkok International Motor Show, running until April 6, where tempting promotions could reignite demand.
The government’s newly approved 5-billion-baht loan fund for SMEs buying pickups is also expected to help, Surapong added, urging the government to allow non-financial institutions to offer auto loans to revive the struggling market, reported Bangkok Post.
“We need to wait a few months to see how the measure will stimulate pickup sales.
Earlier this month, the Federation of Thai Industries (FTI) warned the Thai automotive industry of the potential challenges faced if US President Donald Trump proceeds with his plan to impose tariffs on car imports.
Trump revealed plans to implement a 25% tariff on cars in April with tariffs on imports from Canada and Mexico delayed.
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