As reported by the Wall Street Journal, the Trump administration is poised to ease some of the tariffs previously imposed on imported auto parts, aiming to mitigate the challenges facing U.S. automakers. This development has been confirmed by a White House official, according to Reuters, with an official announcement anticipated on Tuesday.
CGS International Securities (Thailand) (CGSI) stated that as the U.S. currently applies a 25% tariff on imported auto parts, a measure that has significantly impacted the automotive industry, the anticipated tariff exemptions are expected to bolster domestic car production.
This policy shift is seen as a favorable development for Thai electronics stocks within the analyst’s coverage, particularly those with significant exposure to the auto sector. Among them, KCE Electronics Public Company Limited (SET: KCE) stands to benefit the most, given that 80% of its sales are tied to the automotive industry.
Other companies, such as Hana Microelectronics Public Company Limited (SET: HANA) and Delta Electronics (Thailand) Public Company Limited (SET: DELTA), are also expected to gain, albeit to a lesser degree.
