Thailand’s industrial sentiment dipped in March, the first decline in three months, amid apprehensions regarding U.S. tariffs, the Federation of Thai Industries (FTI) reported on Tuesday.
The industrial sentiment index plummeted to 91.8 from February’s 93.4. Additionally, an FTI index forecasting sentiment for the upcoming three months also saw its first decrease in three months, sinking to 95.7 from the previous survey’s 97.6.
Thailand is among the hardest hit by U.S. tariffs in Southeast Asia, with the U.S. administration, under President Donald Trump, imposing a 36% tariff. Despite this, a temporary 90-day suspension of these tariffs is seen as a beneficial window, offering Thailand crucial preparation time.
However, Prime Minister Paetongtarn Shinawatra, earlier on Tuesday, announced the postponement of Thai-U.S. trade discussions initially scheduled for April 23, citing no specific reason.
There have been speculations that the U.S. could force countries to pick sides between the U.S. and China or lower trading deals with Beijing for the least.
Knowing this, China issued a warning on Monday indicating it will retaliate against countries collaborating with the U.S. in ways that undermine Beijing’s interests. This caution comes as the Trump administration reportedly plans to leverage tariff negotiations to urge U.S. trading partners to scale back dealings with China.
Last year, the United States emerged as Thailand’s premier export client, representing 18.3% of Thailand’s global exports, totaling $54.96 billion. Meanwhile, the U.S. reported its trade deficit with Thailand to be $45.6 billion.
