MalaysiaThai exports set to take a hit from new US tariffs
Thai exports are expected to be negatively impacted by new 12.5% US tariffs, which could weaken export competitiveness and add pressure to economic growth in the second half, according to Asia Plus Securities (ASPS).
Thai Manufacturers Face Sharper US Trade Margins
The imposition of a 12.5 percent US tariff forces Thai exporters to either absorb higher duties or attempt to pass costs onto American buyers. In practice, price-sensitive supply chains leave little room for markup, meaning local producers will likely see squeezed profit margins throughout the second half. Companies that fail to optimize operational costs risk losing market share.
As Asia Plus Securities noted, this headwind adds pressure to Thailand's economic growth in the second half. What to watch next is whether exporters can pivot trade volumes to alternative markets or absorb price adjustments without trimming production. The operational hurdle lies in managing cash flows while competitiveness weakens.
Investment committees should immediately stress-test Thai trade exposure against reduced export competitiveness and lower second-half earnings forecasts.