Bangkok: Thai Chamber of Commerce academics reveal that President Trump's tariffs on BRICS countries, which are significantly higher than those on ASEAN nations, have opened new avenues for Thai exports, contributing to GDP growth surpassing 2%.
According to Thai News Agency, Assoc. Prof. Dr. Anusorn Thamjai, Dean of the Faculty of Economics and Director of the Digital Economy, Investment and International Trade Research Center (DEIIT) at the University of the Thai Chamber of Commerce, emphasized how the disparity in tariffs has altered competition dynamics in the US market, favoring ASEAN exports over those from BRICS countries.
Trump's tariffs have led to a marked difference in competitiveness, with BRICS countries facing higher tariffs, thereby losing market share, while ASEAN nations, particularly Thailand, are gaining. The DEIIT analysis suggests that the tariffs could boost ASEAN exports, leading to production shifts from BRICS to ASEAN if the tariff disparity persists. The tariff changes affect key products, with BRICS nations like China and India facing tariffs as high as 50-55%, impacting exports in agriculture, textiles, and electronics, among others. Conversely, ASEAN countries enjoy reduced tariffs, with Thailand, Malaysia, Indonesia, and the Philippines witnessing rates drop to 19%, while Vietnam remains slightly higher at 20%. Singapore benefits from the lowest tariffs at 10%.
Assoc. Prof. Dr. Anusorn highlighted that Thailand and ASEAN countries are poised to capitalize on the rubber and automotive sectors. With BRICS countries hampered by high tariffs, ASEAN nations are likely to increase their market share in these industries. Thailand and Indonesia are leading in natural rubber and automotive tires, while Vietnam and Malaysia show strength in bicycle tires and synthetic rubber, respectively. The US automotive market also presents new opportunities for ASEAN, particularly in pickup trucks and electronic parts, as high tariffs on Chinese and Indian products redirect orders toward Southeast Asia.
The DEIIT's findings indicate a shift in orders for mobile phones, computers, and home appliances to ASEAN, suggesting a potential relocation of production bases. Vietnam excels in smartphones and electrical appliances, whereas Thailand is robust in home appliance components, and Malaysia and the Philippines have growth prospects in semiconductors and telecommunications equipment. This transformation in trade dynamics underscores ASEAN's strategic positioning as a viable alternative to China, fostering enhanced competitiveness in the US market.