Thai and mighty: Exports soar to 3-year high despite tariff troubles
Thai exports are firing on all cylinders, with shipments rocketing to their highest level in three years, defying fears over punishing US tariffs and giving the economy a hefty shot in the arm.
Thai exports surged for the ninth straight month in March, jumping 17.8% year-on-year to a record-breaking US$29.5 billion, or around 1 trillion baht, according to the Commerce Ministry.
Commerce Minister Pichai Naripthaphan hailed the result, noting that even after excluding gold, oil-related goods and weapons, real-sector exports still shot up by a healthy 15%.
“This performance is a strong signal that our manufacturing sector and global trade partners are actively responding to challenges and adapting well.”
Much of the growth came from the industrial sector, with booming demand from major trading partners like the US, China and the European Union. These countries have ramped up imports to avoid supply chain shocks linked to rising US tariffs, a move aimed at shielding their industries from future cost hikes.
For the first quarter of the year, exports totalled US$81.5 billion (about 2.74 trillion baht), a 15.2% jump from the same period last year. Thailand also posted a tidy trade surplus of US$1.08 billion (36.4 billion baht), boosting hopes that GDP growth could top 3% this year.
While there are still clouds on the horizon, with US tariff policy likely to hit April’s figures, Pichai remains bullish.
“We’re confident we can hit our full-year export target of 2–3%. We’re actively working with the US Trade Representative and have measures in place to counter any fallout.”
These include efforts to block export circumvention and identify products suitable for negotiation, as Bangkok looks to keep trade ties on an even keel.
Poonpong Naiyanapakorn, head of the Trade Policy and Strategy Office, echoed the optimism. He pointed to a temporary 90-day halt on new US tariffs, which could lift shipments through April, May and June, barring any sudden breakthroughs in trade talks.
Not all sectors shared the spoils, though, Bangkok Post reported. Agricultural and agro-industrial exports took a hit, falling 3.1% in March, the ninth straight month of decline. While rubber, processed chicken and pet food posted gains, key staples like rice, cassava, canned seafood and sugar slipped. Still, the category managed to inch up 0.2% across the quarter.
Meanwhile, industrial exports remained the star performer, leaping 23.5% in March and logging a full year of growth. Computers, cars, rubber products and heavy machinery led the charge, with Q1 industrial exports up a robust 19.4%.
As global demand heats up, Thailand looks set to ride the wave, tariffs or no tariffs.
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