Export-related companies in Thailand have expressed concerns that sweeping U.S. tariffs could cast a shadow over the future development of their businesses.
The United States is Thailand’s largest export market, accounting for 18 percent of the country's total exports. Under U.S. President Donald Trump's trade measures, Thailand faces a 36 percent tariff. With direct exports accounting for nearly 10 percent of Thailand's GDP, the tariff could reduce this contribution to less than 1.5 percent this year.
Somphop Auesongtham runs a livestock feed company that provides aqua feed for shrimp farming, which makes up a quarter of Thailand's shrimp exports to the United States.
He worries that the tariffs could drive up both shrimp prices and feed costs, putting pressure on his business from both sides.
"The trade war is very concerning and will completely change the way we do business. It will widen the gap between the businesses that can survive and those that cannot," said the businessman.
Despite the challenging situation, foreign affairs and security expert Panitan Wattanayagorn believes Thailand should seize the opportunity to adapt, diversify, and strengthen its regional ties.
"It will be painful in the next few months for sure and it will be very challenging for the next few years. But within five years, ten years, I think we will be in a much better position than now," said Wattanayagorn.
Thai exporters worry U.S. tariffs could threaten survival of their businesses
