BANGKOK, Thailand – The Federation of Thai Industries (FTI) has raised the alarm over the United States’ decision to impose a sweeping 36% import tariff on all Thai exports, effective August 1, 2025. The new tariff rate, significantly higher than those levied on regional competitors such as Vietnam (20%), Indonesia (32%), and Malaysia (25%), has sparked deep concern about Thailand’s competitive position in global trade.
FTI Chairman Kriengkrai Thiennukul said the sudden and steep tariff hike could inflict losses of 800–900 billion baht on Thailand’s export sector, especially in key industries that rely heavily on U.S. markets. These include processed foods, agricultural products, automobiles and auto parts, electronics, electrical appliances, textiles, jewelry, steel, and aluminum.
“Although Thailand submitted its first proposal to the U.S. on July 6 and signed it on the morning of July 7, it appears to have been overtaken by the U.S. announcement,” Kriengkrai stated. “We have now sent a second proposal, which differs significantly from the first — particularly in the number of product categories for which we’re requesting a 0% tariff. This list includes several thousand items.”
While the Thai government has yet to receive a response to the new submission, the FTI remains hopeful that the revised proposal will yield a more favorable outcome if the U.S. agrees to review it.
In response to the mounting uncertainty, the FTI has called an emergency meeting with 47 industrial groups and 11 sector clusters to assess the impact on specific industries and prepare mitigation strategies. The findings will be presented to the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB), which plans to hold urgent talks with government agencies to formulate a comprehensive national response.
The FTI emphasized that urgent coordination between the private sector and the government is essential to protect Thailand’s export base and prevent long-term structural damage to trade relations with the U.S. (TNA)
