Yuttana noted that while a 20\u201325% tariff would allow Thailand to remain competitive, a continuation of the current 36% rate would force many exporters to scale back operations\u2014potentially triggering mass layoffs and a long-term contraction in export volumes.<\/p>\n
\u201cIt all depends on the final announcement from the US. If it\u2019s 36%, then it\u2019s every man for himself\u2014we\u2019ll see a prolonged downturn. But if we land a rate in the 20\u201325% range, we can still compete. Orders will continue, and jobs will be preserved. Right now, we can only wait and see,\u201d he added.<\/p>\n
Jewellery sector on edge as 800,000 workers face uncertainty\u00a0<\/p>\n
Somchai Phornchindarak, President of the Federation of Thai Gem, Jewellery and Precious Metal Associations, has expressed concern over the potential impact of looming US tariff hikes on Thailand\u2019s gem and jewellery sector.<\/p>\n
He noted that export figures to the US during the first half of this year remained robust, as buyers rushed to import goods ahead of the anticipated imposition of reciprocal tariffs by Washington on August 1. Manufacturers in Thailand also accelerated shipments in response. However, the final tariff rate to be applied to Thai goods remains unclear.<\/p>\n
Previously, Thai gems and jewellery were subject to standard Most Favoured Nation (MFN) tariffs by the US, averaging around 6\u20137%. This has already been increased to 10% since April, following a broader tariff adjustment by Washington affecting trade partners globally.<\/p>\n
Somchai said it would be highly unlikely for Thailand to receive a tariff rate as low as 20%, like Vietnam. \u201cThat would be nothing short of a miracle,\u201d he said. \u201cVietnam essentially gave everything up by slashing its tariffs on US imports to zero and committing to buying tens of billions of dollars’ worth of American goods. Thailand can\u2019t afford to match that without severe repercussions, particularly for our agriculture sector, which supports a large segment of our population.\u201d<\/p>\n
He believes a more realistic scenario would be a 25% tariff. \u201cThe US remains concerned about several issues with Thailand, such as Chinese goods being rerouted through Thai exporters, and geopolitical considerations like the US seeking to establish a military presence in Thailand\u2014something we\u2019ve not agreed to.\u201d<\/p>\n
Should Thailand receive a less favourable tariff than its competitors\u2014including India, China, and Vietnam, all major gem and jewellery exporters\u2014Somchai warned that existing production facilities in Thailand may shut down rather than expand. He noted that many international investors have already shifted operations to Vietnam, which now competes directly with Thailand in this segment.<\/p>\n
The potential fallout could be devastating for the estimated 700,000 to 800,000 workers still employed in the sector, a sharp drop from over a million in previous years.<\/p>\n
\u201cIf these workers lose their jobs, it will be very difficult to attract the next generation into the industry,\u201d he added. \u201cYoung people today are turning to other professions that offer quicker and better pay. Once this knowledge base is lost, reviving the industry will be even harder.\u201d<\/p>\n
Hopes pinned on US investors as Thailand seeks lower tariff for electronics exports<\/p>\n
Sampan Silapanad, Vice Chairman of the Electrical and Electronics Industry Group at the Federation of Thai Industries (FTI), has voiced concern that if the United States maintains high import tariffs on Thai goods, it could place Thailand at a distinct disadvantage against regional competitors.<\/p>\n
Countries such as Malaysia, Vietnam and the Philippines\u2014key ASEAN peers with similar electrical and electronics manufacturing capabilities\u2014stand to gain if Thailand is hit with steeper tariffs. \u201cIn today\u2019s globalised production environment, shifting orders to neighbouring countries has become remarkably easy,\u201d Sampan said.<\/p>\n
He warned that such a scenario would have significant repercussions across Thailand\u2019s manufacturing base. It would impact not only contract manufacturers, but also upstream Thai suppliers and component producers. The sector, which currently employs an estimated 600,000 workers (down from over 800,000\u2013900,000 a decade ago due to automation), could see further job losses.<\/p>\n
The fallout could extend to reduced household income, including cuts to regular wages and overtime pay, ultimately weighing on Thailand\u2019s broader economic growth.<\/p>\n
When asked whether US electronics companies operating in Thailand have been lobbying their government to push for tariff exemptions\u2014or at least reduced rates\u2014Sampan confirmed that American firms have provided information and offered support to US authorities.<\/p>\n
However, he added, \u201cAt the end of the day, it\u2019s impossible to predict what President Donald Trump will decide. All we can do is wait for the official announcement in the coming days.\u201d<\/p>\n
Rubber products sector under threat<\/p>\n
Luckchai Kittipol, Honorary President of the Thai Rubber Association, warned that Thailand\u2019s rubber industry\u2014particularly tyre manufacturing\u2014faces significant disruption if the United States imposes high reciprocal tariffs.<\/p>\n
He noted that several major multinational companies from Europe, Japan and China have established tyre and rubber production bases in Thailand, with the US as a primary export destination. Should Thai exports become uncompetitive due to unfavourable tariffs, the impact would extend beyond tyre exports to include rubber glove manufacturers. Together, these sectors employ over 100,000 workers.<\/p>\n
Pornarit Chounchaisit, President of the Thai Real Estate Association, added that Thailand\u2019s inability to reduce tariffs to zero on US agricultural imports\u2014such as corn, cassava, pork and beef\u2014could prompt inevitable retaliatory tariffs from Washington.<\/p>\n
\u201cWorse still, Thailand may face higher tariffs than competitors like Vietnam and Indonesia, which would undermine our industrial base and push manufacturers to shift production to those countries with lower trade barriers,\u201d he said.<\/p>\n
Millions of workers at risk across multiple sectors<\/p>\n
A senior executive at a major Thai retail company commented that the immediate impact of US tariffs on domestic retail may be limited. However, in the long term, core export-driven industries\u2014automotive, electronics, and agriculture\u2014are likely to suffer.<\/p>\n
\u201cTo stay competitive, Thai producers will be forced to cut raw material costs to offset higher tariffs. This will affect their suppliers and ultimately, the labour force,\u201d the executive said.<\/p>\n
According to initial estimates, 1\u20132 million workers are directly engaged in export-related industries, with several million more in the agricultural sector and 2\u20133 million in related supply chains. \u201cIf the situation worsens, the fallout could affect millions of workers. The government must prepare contingency plans to cushion the blow,\u201d the source added.<\/p>\n
Midea Thailand prepares a flexible response to tariff risks<\/p>\n
Jackson Jai, Director of Midea Building Technology (Thailand), acknowledged that a 36% US tariff on Thai goods could reduce the competitiveness of Thai exports and dampen investor confidence.<\/p>\n
Midea recently invested 2.2 billion baht in a new factory located on 46 rai in the CPGC Industrial Estate in Rayong. The facility, which began operations in April, employs around 1,000 workers and has a production capacity of 600,000 commercial air-conditioning units per year\u2014over 90% of which are destined for the US market.<\/p>\n
\u201cAt present, our production and workforce have not been affected,\u201d Jai said. \u201cWe have built a flexible and robust business strategy to manage this challenge, and we are confident in the Thai government\u2019s negotiation efforts with the US.\u201d<\/p>\n
He added that Midea is actively expanding into domestic and regional markets to reduce reliance on potentially vulnerable export channels.<\/p>\n","protected":false},"excerpt":{"rendered":"Yuttana noted that while a 20\u201325% tariff would allow Thailand to remain competitive, a continuation of the current…\n","protected":false},"author":2,"featured_media":18495,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[45,49,48,10851,46,15911,56,863,3592,15910,182],"class_list":["post-18494","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-ca","tag-canada","tag-competitiveness","tag-economy","tag-garments","tag-industry","tag-tariff","tag-thailand","tag-trade-talk","tag-us"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/18494","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=18494"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/18494\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/18495"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=18494"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=18494"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=18494"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}