Thai exporters risk higher US tariffs: expert

Thai exporters risk higher U.S. tariffs, while the Thai government could face pressure to import more goods from the U.S. to reduce its trade surplus with the country, according to the chief of Kasikorn Research Centre (K-Research).

Burin Adulwattana, managing director and chief economist at K-Research, said the impact would depend on the extent of the tariff increase and whether it would be applied universally to all countries, or specifically to Thailand.

According to Burin, Thai exports to the U.S. that are at risk of U.S. trade barriers include Bluetooth modules, broadband products, solar modules, power adapters, machinery and parts, auto parts, mobile camera modules, and air conditioners.

However, for auto parts such as tyres, despite U.S. trade barriers, Thai-made tyres still have a cost advantage, he said.

Burin warned Thailand may also need to purchase more goods from the U.S. to reduce its trade surplus.

Thailand has the 10th largest trade surplus with the U.S. Thailand may be expected to import more oil, chemicals, natural gas, small aircraft, soybeans and wheat from the U.S., according to K-Research.

However, he said some Thai exports to the U.S. may be exempt from trade barriers, particularly those that are originally from U.S. companies, but are manufactured in Thailand.