BANGKOK (Reuters) – Thailand’s exports of auto parts will be affected by newly imposed U.S. tariffs, the finance minister said on Thursday, adding he hoped to negotiate to send parts directly to America rather than via manufacturers in other countries.
Thailand is Southeast Asia’s biggest autos production centre and an export base for some of the world’s top automakers, including Toyota and Honda.
U.S. President Donald Trump has announced a 25% tariff on imported vehicles, expanding a global trade war and prompting criticism and threats of retaliation from affected U.S. allies.
The tariffs will reduce exports of auto parts from Thailand to other countries that produce cars, Finance Minister Pichai Chunhavajira told reporters.
“We’ll have to see how much it will affect us,” he said, adding he hoped Thailand could negotiate to ship auto parts to the United States, as it would take time for companies to shift production facilities to America to avoid the tariffs.
“It would be a good solution if we can also send parts to America,” he said.
Yeap Swee Chuan, chief executive of AAPICO Hitech, one of Thailand’s largest auto parts manufacturers, said the impact of the tariffs would likely be limited.
“We supply to most Japanese companies locally,” he told Reuters, adding that those vehicles were typically not exported to the U.S. “For the Thai companies, we are quite OK.”
Only a small percentage of AAPICO’s production was currently going directly to the U.S., and tariffs on auto parts would make it difficult to send parts there, Yeap Swee Chuan said.
As for other exports that could be hit with tariffs that Trump has said he will announce next week, Pichai said they might not be impacted immediately.
“We still have time to see which ones will be affected and how we will negotiate. Let’s wait and see,” he said.
Thailand is worried it could be hit with U.S. tariffs due to its large trade surplus with the United States.
(Reporting by Kitiphong Thaichareon, Orathai Sriring and Devjyot Ghoshal; Editing by John Mair)
