US President Donald Trump had announced new tariff measures, imposing a 25% tax on imports from Mexico and Canada and an additional 10% on imports from China. These measures will take effect on February 4, 2025, and will remain until these countries increase their effort to curb the flow of migrants and fentanyl crossing into the US.
Furthermore, Trump is also considering imposing additional tariffs on Europe’s imported goods in the future. His actions may trigger retaliatory tariff increases, affecting the US and its three major trading partners, who have a combined annual worth of 2.1 trillion dollars.
Nevertheless, Krungsri Securities (KSS) forecast that Thailand’s goods may earn opportunities as Mexico and Canada’s exports to the US will become more expensive. Furthermore, the nation may gain benefits from supply chain adjustments as the investment relocates to Thailand. KSS also predicts that Thailand’s GDP may increase by 0.05 percentage points.
Thai companies in industrial estate development like WHA Corporation Public Company Limited (SET: WHA) and AMATA Corporation Public Company Limited (SET: AMATA), along with petrochemical firms such as Indorama Ventures Public Company Limited (SET: IVL), are likely to benefit significantly from these tariffs. Moreover, automotive parts manufacturers in Thailand, which is becoming a production hub for EV parts, may also reap the benefits from Trump’s tariffs as parts from Mexico and Canada become more expensive.
KSS also holds a positive outlook on Thai electrical appliance and electronics stocks, particularly those that produce PCBs and semiconductors, which are key components of electronics and goods that Trump is considering increasing tariffs on. For the Industrial & Petrochemical sector, if Trump imposes import taxes on polyethylene terephthalate (PET) products and pure terephthalic acid (PTA), IVL will likely benefit as its PET in the US will become more expensive.
Trump’s tariffs may lead to a shift in the global supply chain structure, positioning Thailand as a strategic supplier to the US market. As a result, the market could adjust its portfolio to favor stocks that stand to benefit from the trade war. There is a recommendation that investors should pay attention to industrial sectors that are likely to gain from this situation.
