Bangkok (VNA) - Estimates from the Federation of Thai Industries (FTI) indicate that Thailand could face a revenue loss of up to 900 billion THB (approximately 2.58 billion USD) as a result of the US' 36% reciprocal tariff.
FTI President Kriangkrai Thiennukul said that the Thai industries expected to be hardest hit by the tax increases include automotive, food, plastic, chemical, steel, aluminium, textile, electronics and machinery.
For the automotive industry, he said Thailand is currently facing a 25% tariff, imposed since March, and if a 36% reciprocal tariff is added, car manufacturers, particularly motorcycle producers, may relocate their production away from Thailand.
The food industry will be directly affected, particularly processed food and seafood, which are currently exempt, when the 36% tariff is imposed, he said, adding that this will reduce Thailand’s competitiveness.
Exports of chemicals to the US, currently valued at about 2 billion USD, are expected to fall, while US buyers may reject Thai textiles due to increased costs incurred from the 36% tariff, said Kriangkrai.
Only the footwear industry may benefit from the tax increase because other major exporters, such as Cambodia, are facing higher tariffs than Thailand, he added.
The FTI has proposed that the government accelerate negotiations with the US administration, cut import taxes for US products such as maize, tuna fish and meat, and consider issuing certificates of origin for products manufactured in Thailand like hard discs and solar cells.
Kriangkrai further said that the government should make serious efforts to tackle the infringement of intellectual property and market dumping of cheap products into Thailand./.
