Thai electronics and technology shares are poised for a vital breather in tomorrow’s trading session following confirmation that the country’s core tech export products are exempt from the U.S. Trade Representative’s (USTR) latest sweeping tariff hikes.
Speaking exclusively to Kaohoon, Mrs. Arada Fuangtong, Former Director-General of the Department of Foreign Trade under the Ministry of Commerce, revealed that while the newly proposed Section 301 additional tariffs theoretically blanket all imports, critical exclusions have been granted under “ANNEX A”.
According to Mrs. Arada, ANNEX A specifically insulates nine major Thai export categories from the upcoming U.S. levies. Crucially for the capital markets, the top five exemptions directly cover the entire spectrum of Thailand’s electronics supply chain:
- Hard Disk Drives (HDD) and Data Storage devices
- Semiconductors and Integrated Circuits (ICs)
- Printed Circuit Board Assemblies (PCBA)
- Telecommunication and electronic equipment
- Smartphones and related components
The remaining exempted categories cover key agricultural exports, including cassava products, processed coconut, pineapple, and mango.
This targeted exemption serves as a significant relief valve for Thailand’s heavyweight electronics exporters listed on the Stock Exchange of Thailand (SET), most notably HANA Microelectronics (SET: HANA), Cal-Comp Electronics (SET: CCET), and Delta Electronics Thailand (SET: DELTA).
Market sentiment had recently deteriorated on fears that the USTR’s new 10-12.5% tariff rate—triggered by forced labor concerns—would severely squeeze corporate profit margins and disrupt global supply chains.
However, because HANA’s core IC packaging and PCBA operations, CCET’s massive HDD component manufacturing, and DELTA’s advanced power management systems for cloud data centers fall squarely under the protected ANNEX A categories, their actual operational exposure to this tariff round is virtually zero.
While the broader market continues to assess the macroeconomic fallout of Washington’s intensifying protectionism, the explicit exemption of Thailand’s multi-billion-baht electronics pipeline is anticipated to significantly cushion the downside risk for tech stocks when the market opens tomorrow morning.
