Bangkok: The president of the Thai Cassava Trade Association has expressed concerns over the potential impact of a 36% tariff imposed by the Trump administration on cassava starch exports to the United States. This increase in tariffs threatens Thailand’s competitive edge, particularly against Vietnam, its primary competitor, which faces only a 20% tariff.

According to Thai News Agency, Mr. Amnat Sukprasongpol, President of the Thai Tapioca Trade Association, stated that Thailand exports an average of 100,000 tons of tapioca products to the United States annually, valued at approximately 60 million US dollars. Previously, these exports were free of tariffs. The new tariff imposition poses a significant challenge, as Vietnam could gain a competitive advantage with its lower tariff rate.

To counteract this development, Thai exporters are exploring new markets without tariff barriers, such as the Middle East, which has a substantial demand for tapioca flour. Despite these challenges, the overall annual export figures to the US may remain unaffected, as importers have already increased their import volumes in anticipation of the tariff change.

In addition to tariff concerns, the closure of the Thai-Cambodian border checkpoint is causing disruptions in production. While this has led to a decrease in cassava imports from Cambodia, some imports continue from Laos.

Mr. Sukprasongpol emphasized the need to enhance the competitiveness of the entire production chain, starting with increasing yields from Thai farmers. Currently, yields are low, averaging 2 tons per rai, contributing to higher production costs. By increasing yields to 5-6 tons per rai, Thai farmers could reduce costs and enhance competitiveness. Furthermore, managing the outbreak of cassava mosaic disease, which has reduced both yields and quality, could decrease reliance on imported raw materials from neighboring countries.