Thai car exports threatened by Trump’s 25% US tariff plan
The Thai automotive industry faces potential challenges if US President Donald Trump proceeds with his plan to impose tariffs on car imports, according to the Federation of Thai Industries (FTI).
Last month, Trump revealed plans to implement a 25% tariff on autos starting April 2, though tariffs on imports from Canada and Mexico have been delayed for a month following the initial implementation on March 4. This decision has been welcomed by some US car manufacturers with production facilities in neighbouring countries.
However, concerns remain among Thai auto manufacturers due to the country’s ranking as the 16th largest exporter of passenger cars and the 11th largest for commercial motor vehicle (CMV) shipments to the US, as reported by the FTI.
Kriengkrai Thiennukul, Chairman of the FTI, expressed concerns that Trump’s tariff policy might lead to a slowdown in both passenger car and CMV segments. In 2024, Thailand exported 42,000 passenger cars and 20 CMVs to the US market.
The US, the largest global importer of passenger cars and CMVs, recorded imports worth US$267 billion last year. If the proposed tariffs take effect as planned, Thai car exports are expected to be adversely affected, impacting an already struggling automotive sector.
The domestic market has also seen a downturn, with loan rejections due to high household debt levels contributing to a decline in sales. January witnessed a more than 12% drop in domestic vehicle sales year-on-year, with figures falling to 48,092 units.
Vehicle exports also saw a 28.3% decrease, reaching 62,321 units, marking the lowest level in 33 months, according to the FTI’s Automotive Industry Club.
Surapong Paisitpatanapong, Vice-Chairman of the FTI and spokesperson for the club, attributed the poor export performance to concerns over Trump’s tariff plans and competition from cheaper Chinese exports.
Furthermore, Thai auto parts manufacturers have voiced worries about the tariff impact, as they export indirectly to Mexico through Japanese car companies investing there, reported Bangkok Post.
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