As of 14:36 Bangkok time on Friday, Amata Corporation Company Limited (SET: AMATA) found its stock dropped by 13.89% to 15.50 THB per share. WHA Corporation Public Company Limited (SET: WHA) also found its stock at the time dropped by 4.52% to 2.96 THB per share.
The share price of AMATA and WHA continue to decrease over speculation that it is primarily due to the tariff policy of the U.S. president Donald Trump.
The U.S. president announced that Thailand and Vietnam will face reciprocal tariffs at the rate of 37% and 46%, respectively, and on top of global baseline 10%. This led to the diminishing of China Plus One Strategy’s advantage, which caused the drop of demand for Thailand and Vietnam’s industrial estate lands.
The China Plus One Strategy is the strategy several exporters and companies utilized since Trump’s first term. They relocate their manufacturing from China to other countries to avoid high labor cost, geopolitical tensions, and COVID-19.
However, with Trump imposing tariffs on those destinations, including Thailand and Vietnam, the advantage of relocation seems to diminish, ending the idea of several exporters to relocate.
