US trade policies hit four major Thai industries, FTI warns

The comment was made during a roundtable discussion titled “Trump’s Global Quake: Thailand Survival Strategy”, hosted by Krungthep Turakij, Thansettakij and PostToday at the Waldorf Astoria Bangkok Hotel on Wednesday.

Vithavat Thongves, secretary-general of FTI’s Automotive Industry Club, said Thailand exported only 32,000 cars worth US$320 million to the US, compared to total car exports of 1 million units last year.

Exports of automotive components and tyres were valued at US$1.5 billion and US$3.5 billion, respectively, he added.

Vithavat Thongves, secretary-general of FTI’s Automotive Industry Club

Vithavat said the Thai automotive industry had adjusted its production plans and suspended car exports to the US. He clarified that this decision was unrelated to the US’s 25% tariff hike on automotive products and components.

However, he voiced concerns over the reciprocal tariff, which he warned could impact all Thai goods exported to the US. “We have to see what US President Donald Trump thinks, but I can say that just looking at the figures is concerning,” he said.

Vithavat urged the Thai government to engage in negotiations with the US, emphasising that the automotive industry has already been suffering from economic challenges and rising household debt over the past two years. He warned that additional tariffs could increase production costs and disrupt the supply chain.

Bantoon Juicharern, chairman of the FTI’s Steel Industry Club

Steel industry at risk of oversupply

Bantoon Juicharern, chairman of the FTI’s Steel Industry Club, said the United States’ 25% tariff on steel and aluminium has had only a limited impact on Thailand’s steel industry, as the country exports no more than 200,000 tonnes of steel to the US.

However, he noted that the US tariff has triggered a steel oversupply across ASEAN. He expressed appreciation to the Thai government for implementing anti-dumping measures to address the issue.

Bantoon called on the government to increase investment in infrastructure, such as dams and irrigation systems, to improve farmers’ access to water, strengthen the agricultural sector, stimulate domestic consumption, and create jobs.

“Boosting the use of domestic materials to 50% and expanding public-private partnership projects – which currently have a total project value close to 1 trillion baht – will help drive domestic steel production,” he said.

He also urged the government to consider comprehensive investment support for steel manufacturers in order to effectively address the oversupply problem.

Charoen Kaewsuksai, chairman of FTI’s Food and Beverage Industry Club

Decline in food exports to the US

Charoen Kaewsuksai, chairman of FTI’s Food and Beverage Industry Club, said Thailand exported food products worth 160 billion baht to the United States. However, he warned that food exports to the US are likely to decline.

He expressed concern that US tariffs could severely impact small- to medium-sized food producers. “Thailand, which exports a significant proportion of food to the US – including future food, functional food, coconut and coconut jelly – will be hit hard,” he said.

Charoen also pointed out that Thailand’s plan to purchase more agricultural products from the US may not be sufficient to balance negotiations, as Thailand continues to run a large trade surplus with the United States.

“The government must think ahead and prepare negotiation strategies now – the longer we wait, the more Thai workers will be affected,” he warned.

He also expressed concern that direct competitors such as Vietnam, India and Indonesia could secure favourable trade terms if they move quickly to negotiate lower tariffs, potentially costing Thailand its market share.

To address the challenges, Charoen proposed seven recommendations for the Thai government:

1. Support and enhance business efficiency.
2. Reform redundant regulations.
3. Address tax-related obstacles, including compensating domestic producers.
4. Accelerate free trade agreement (FTA) negotiations with the European Union and Canada.
5. Engage in trade negotiations with Asia-Pacific countries, Europe, and Australia.
6. Establish a fund to support SMEs and startups.
7. Expedite negotiations with the United States, involving professionals and experienced negotiators.

Jaturong Worawitsurawatthana, a representative from the Institute of Industrial Energy

Thai energy industry to explore US energy resources

Jaturong Worawitsurawatthana, a representative from the Institute of Industrial Energy, said the energy sector, accompanied by the Permanent Secretary of the Ministry of Energy, is set to visit energy resource sites in the United States in the near future.

Commenting on the government’s proposal to increase energy imports from the US, he noted that Thailand should improve its oil refineries to facilitate such imports. He called on the government to support the establishment of new oil refineries to meet future energy needs.

Jaturong stated that Thailand remains capable of importing liquefied natural gas (LNG) from the US, citing that the country’s two LNG ports currently have a total storage capacity of 19 million tonnes, of which 9 million tonnes remain available. He added that storage capacity could be expanded by an additional 8 million tonnes.

He also recommended that the government ease restrictions on LNG exports to support gas imports from the US and position Thailand as an LNG hub for the ASEAN region.

“The energy sector is ready to support the government in increasing energy imports from the United States,” he said.