Aerial view of a container port in Thailand with ships and loading cranes at work

New US tariffs hit Thailand's exports hard

2025-04-05

After the US recently imposed new tariffs on several Asian imports, it is now warning Thai National Shippers Council (TNSC) for serious effects on Thailand's exports. Rice, sea freight and vehicle parts are particularly expected to be affected.

High tariffs on key products from Thailand

The duties, which amount to 36 percent, is part of a package of countermeasures against what the US describes as "unfair trade conditions".

According to TNSC, the Thai export industry has already noticed a slowdown, and the forecast for the year has now been lowered. The new tariffs make it harder for Thailand to compete with countries like India and Vietnam, which currently have more favorable agreements with the US.

Regional comparison: Thailand in the middle

Thailand received a retaliatory tariff rate of 36%, which is lower than neighboring Vietnam (46%), but higher than the Philippines (17%), Malaysia (24%), and Indonesia (32%). This shows how different countries in the region are affected depending on the trade balance and previous agreements with the US.

Effects on trade and consumer markets

In addition, the trade association warns that consumer prices in the US could rise, which in turn reduces demand. TNSC urges the government to urgently sit down at the negotiating table with US authorities to reduce the damage.

Exports to the USA account for approximately 19 percent of Thailand's total merchandise exports, making the country vulnerable to trade barriers of this kind. At the same time, Thailand imports approximately 7 percent of its goods from the US, which shows that there is a strong trade exchange in both directions.

This is what tariffs look like between the US and Thailand today

According to information from Trading Economics The current customs climate between the countries is relatively asymmetric:

USA:s Customs duties on Thai goods: on average about 2%
Thailand's tariffs on American goods: about 8%

This trade deficit to the detriment of the United States has long been a sensitive topic. Donald Trump's announcement of a new retaliatory tariff on 36% against Thai goods represents a dramatic increase compared to previous levels.

TNSC's three proposed solutions

To mitigate the effects of the new tariffs, TNSC proposes three areas of action:

Accelerate bilateral negotiations with the US
- Promoting Thai investment in the United States
- Reduce the trade surplus through targeted imports from the US
- Use ASEAN+ strategy to strengthen Thailand's negotiating position
Diversify export markets
- Use existing free trade agreements with other trading partners
- Collaboration between government and business to find new markets
Reforming exports and logistics
- Promote environmentally friendly and high-tech industry
- Streamline the logistics system and introduce better digital infrastructure

Most vulnerable export products to the US

TNSC also highlights the 15 product groups that are particularly vulnerable to increased tariffs in the US:

Mobile phones

Electronic components

Car deck

Semiconductors

Electrical transformers

Printing equipment parts

Car parts

Jewellery

Air conditioning

Cameras

Printer

Ingredients for animal feed

Electronic circuit boards

Ris

Refrigerator

Ships are loaded with containers in a large export terminal — The 36% tariffs particularly hit products like mobile phones, electronics and car parts – goods that are visible in containers like these.

The government's response and next steps

The Ministry of Finance and the Ministry of Trade have both expressed concern and said that measures are being considered, including to diversify export markets and strengthen digital trade within ASEAN.