BANGKOK, Thailand – Assoc. Prof. Dr. Anusorn Thammajai, Dean of Economics and Director of the Digital Economy, Investment, and International Trade Research Center at University of the Thai Chamber of Commerce, revealed that U.S. tariffs under the Trump administration impose significantly higher rates on BRICS countries compared to ASEAN. This shift alters competition in the U.S. market, disadvantaging BRICS exporters while creating new opportunities for Thai and ASEAN products.
BRICS countries like China, India, and Brazil face tariffs up to 50-55%, severely affecting key exports such as agriculture, textiles, automobiles, electronics, and machinery. Meanwhile, ASEAN countries benefit from tariff reductions, with Thailand, Malaysia, Indonesia, the Philippines, and Cambodia enjoying rates lowered to about 19%. Vietnam still faces tariffs above 20%, while Singapore enjoys the lowest rates around 10%. Laos and Myanmar face higher tariffs of 40-50%.
This tariff gap is expected to help ASEAN countries grow their market shares in the U.S., potentially attracting production relocation from BRICS to ASEAN nations. Thailand and Indonesia stand out in natural and automotive rubber products; Vietnam in bicycle tires; Singapore, Thailand, and Malaysia in synthetic rubber; and Thailand and Malaysia in industrial rubber goods.
Thailand and some ASEAN countries also gain advantage in automotive and parts exports, with orders shifting away from BRICS due to high tariffs. Thailand is strong in pickup trucks and tires, Malaysia excels in automotive electronics, and Vietnam specializes in wiring and motorcycle tires.
Additionally, ASEAN is poised to expand in electronics and electrical appliances, with Vietnam leading in smartphones and appliances, Thailand strong in parts and home electronics, and Malaysia and the Philippines growing in semiconductors and telecom equipment.
Dr. Anusorn recommends that Thailand’s Monetary Policy Committee consider lowering interest rates and easing monetary policy to support this growth, with GDP expected to surpass 2% boosted by these trade dynamics. (TNA)
