Thailand’s Finance Minister announced that new U.S. tariffs on auto imports will impact the country’s auto parts exports. He hopes to negotiate direct shipments to the U.S. rather than routing through other nations. While some local manufacturers report limited effects, the situation raises concerns about overall trade relations and potential additional tariffs.
Thailand’s Finance Minister Pichai Chunhavajira has indicated that recent U.S. tariffs on imported vehicles will have a negative impact on the nation’s auto parts exports. He expressed hopes for future negotiations allowing the direct shipment of auto parts to America instead of routing them through other countries. Given Thailand’s significant role as an automotive production hub, this tariff poses critical challenges for local manufacturers.
The U.S. President has implemented a 25 percent tariff on foreign vehicles, escalating tensions in global trade and provoking backlash from other nations. Minister Pichai noted that these tariffs could lead to reduced auto parts exports from Thailand to nations that assemble cars. He emphasized the urgency of understanding the tariffs’ effects, asserting that negotiations to direct shipments to the U.S. would be favorable before companies adapt their operations domestically.
Yeap Swee Chuan, CEO of AAPICO Hitech, a major auto parts manufacturer in Thailand, reassured that the overall impact of the tariffs on their business would be minimal. He pointed out that AAPICO primarily supplies parts to Japanese companies that do not focus on exporting vehicles to the U.S. Therefore, only a limited volume of their production is targeted for the American market, suggesting the tariffs may not significantly hinder his company’s operations.
Regarding the potential for additional tariffs announced by President Trump, Finance Minister Pichai expressed a cautious optimism, stating that their effects may not be immediate. He advised vigilance while they await more information about the upcoming tariffs, allowing them time to strategize their negotiation efforts effectively. Thailand remains apprehensive about receiving U.S. tariffs due to its trade surplus with America, hinting at further economic implications.
In summary, the recent U.S. auto tariffs are expected to impact Thai auto parts exports significantly. Concerns from Finance Minister Pichai Chunhavajira highlight the necessity for direct negotiations with the U.S. to mitigate these effects. Although some local manufacturers like AAPICO Hitech may face limited repercussions, the overall outlook remains uncertain due to possible forthcoming tariffs and ongoing U.S.-Thailand trade dynamics.
Original Source: www.channelnewsasia.com
