Pairoj Laungthaleongpong, Chief Executive Officer of AIRA Securities, commented on the United States’ plan to impose a 36% tariff on Thai imports, warning that the measure will have a substantial impact on Thailand’s export industry, particularly in the electronics, food, and textile sectors. The higher costs resulting from this tariff could erode the competitiveness of Thai products and hurt the overall Thai economy, he said.
The 36% US tariff is a retaliatory measure under President Donald Trump’s ‘Reciprocal Tariffs’ policy targeting Thailand, and this stands as a severe pressure point for the Thai economy, Pairoj explained.
The export sector will be forced to shoulder significantly higher costs and may lose ground in terms of competitiveness, especially compared to Vietnam, which faces only a 20% tariff rate and enjoys lower labor costs, he continued.
It’s crucial to monitor how ‘Team Thailand’—the coalition of government and private sector—will respond to this challenge and whether their efforts will be timely before the new tariffs come into force on August 1, 2025, he added.
Amid growing uncertainties facing Thai exports, Pairoj suggested that the government urgently accelerate efforts to expand into new fast-growing markets such as South Asia, the Middle East, and Europe. He also emphasized Thailand’s advantageous position as the ASEAN hub with robust infrastructure, especially in the data center industry, which is garnering increasing attention from investors.
Pairoj underscored that the future of the Thai economy depends significantly on strong government-led investment stimulus policies, particularly in tourism, and long-term structural transformation of the economic base.
Nevertheless, AIRA Securities devised investment strategies for the Thai stock market in the current environment, recommending a portfolio readjustment towards defensive stocks with solid customer bases and high dividend yields.
At present, Thai stock prices are considered cheap, making this a strategic moment for investors to reposition their portfolios, with an emphasis on stock markets where GDP growth prospects are robust.
