Impact of Low-Cost Imports and US Trade Policies on Thai Industries
PUBLISHED: 4 Jan 2025 at 04:45
The Thai Industry Ministry is urging manufacturers across five critical sectors, including automotive, to adapt proactively to anticipated US trade policies, the surge of low-cost imports, and the wave of disruptive technologies.
The sectors also include electronics, electrical appliances, steel, and garments.
“We advise entrepreneurs within these industries to closely monitor how these factors could intensify throughout the year, impacting their operations,” stated a senior official from the Office of Industrial Economics (OIE).
Domestic car sales are experiencing a downturn, with buyers struggling to secure auto loans amid rising household debt levels.
In addition, auto parts manufacturers primarily producing components for internal combustion engine vehicles face challenges from the ongoing transition to electric vehicle technology.
Thailand is actively promoting electric vehicle adoption, offering incentives to global manufacturers to establish EV assembly plants in the country.
Last year, the Federation of Thai Industries (FTI) encouraged auto parts manufacturers to diversify into medical device production as a strategic adjustment.
The FTI believes this transition could include manufacturing medical products, such as single-use diagnostic test kits and durable items like wheelchairs and hospital beds, although support from the government will be critical for successful implementation.
The OIE has previously warned of an increasingly competitive landscape in Thailand’s market as foreign entities gain ground by sending more products to the region.
In the previous year, many consumers opted for affordable imported goods over locally produced items, especially from Chinese suppliers who frequently utilize online sales channels.
With a stronger US tariff policy expected under the incoming administration, Thai manufacturers may face new challenges. Reports indicate notable tariff increases could be imposed on imported goods with specific rates of 10-20% and potentially reaching 60-100% for products from China.
