FSS International Investment Advisory Securities noted in analysis regarding the impact of the United States’ imposition of 36% Reciprocal Tariffs on Thailand. The securities firm highlighted food and electronics as the most vulnerable to the upcoming levy.
Leading the food export group was ITC (with 50% of total revenue coming from the U.S.), TU (at 20%), ASIAN (50%), AAI (67% from the U.S. and Canada combined). Furthermore, the brokerage warns that Vietnam, Thailand’s rival on pet food export, was being levied at 20%, lower than Thailand.
The affected beverage stocks include PLUS (44%), COCOCO (24%), MALEE, SAPPE (13%).
STA is the most susceptible to tariffs among the agricultural sector, with 13% of incomes from the U.S., including 7% from rubber business, and STGT’s rubber glove operation at 18%.
Electronic groups are also highly exposed to the tariffs, led by DELTA (30%), HANA (26%), and KCE (21%). In addition to 36% tariffs, Thailand semiconductor rival Malaysia was being taxed at 25%, lower than Thailand and likely to negatively impact the kingdom’s competitiveness. Taiwan remains to be closely monitored as the U.S. have not announced any change to its 32% tariffs scheme yet.
However, hopes remain for Thailand as the tariff imposition date has been pushed to August 1, leaving three more weeks of its negotiators. If the talks fail, these new tariffs will heavily affect Thai exporters. Thai delegates will have to promptly negotiate with its trading partners in the U.S., and the firm believes that exporters will be expected to carry some tariff burdens.
Meat exporters such as CPF, BTG, TFG, and GFPT did not export to the U.S., only CPF shipping around 0.3% of its output to the U.S. Nevertheless, risks remain if Thailand offers to lift the ban on U.S. pork in exchange for tax reduction, which could affect Thai meat exporters.
Furthermore, Thailand is also at risk of additional 10% tariff as Thailand is a partner country in BRICS, although the situation remains unclear and warranted further observation.
