Tariffs announced by US President Donald Trump on April 2 dealt a major blow to export-driven countries in Southeast Asia. Tariffs reached up to 49%, negatively affecting the electronics, textile, and microchip industries.
Thailand was hit with a 36% tariff. “It was a real shock,” said Richard Han, head of Microelectronics. Thailand eventually managed to reduce the rate to 19%, but the negotiations were tough.
Political issues and delayed agreement
Unlike Vietnam, Thailand fell behind in the talks due to political disputes, a weak government, and diplomatic tensions with the US. The US demand to access Thailand’s agricultural market caused internal pressure. Local farmers, especially pork producers, are worried about competition.
The US is accusing Southeast Asia of covertly rerouting Chinese goods. If these accusations are confirmed, tougher measures are expected. Local producers admit it will be difficult to adapt to these conditions.
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