# Thailand’s Export Growth Slumps Amid Impact of US Tariffs

- Link: https://www.thailand-business-news.com/economics/248007-thailands-export-growth-slumps-amid-impact-of-us-tariffs
- Published: 2025-10-03T00:39:14+07:00
- Author: Arun Upadhyaya

**Thailand’s August exports grew 5.8%, the slowest in nearly a year, due to a stronger
baht and U.S. tariffs. The ministry maintains a 2-3% export growth forecast for 
2023. Officials remain cautious, citing global economic uncertainties and potential
disruptions in key markets. Efforts to diversify export destinations and promote
high-value goods are underway to counterbalance these challenges.**

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## Key Points

 * Thailand’s exports grew 5.8% in August year-on-year, the slowest increase in 
   nearly a year, influenced by a stronger baht and U.S. tariffs. The growth fell
   short of analysts’ expectations, which forecasted 9.5%.
 * Export growth to the U.S. remains solid at 12.8%, but is expected to decelerate
   in the coming months due to a 19% tariff on Thai goods.
 * The commerce ministry upholds its forecast for 2-3% export growth this year, 
   despite increased imports and a resulting trade deficit of $1.96 billion in August,
   particularly noting a significant drop in rice exports.

**Thailand’s Export Growth Slows Amid US Tariff Pressures**

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Thailand’s export growth has significantly decelerated, hampered by the ongoing 
impact of U.S. tariffs and sluggish global demand. The country’s Ministry of Commerce
reported that exports rose just 3.1% year-on-year in August, a stark contrast to
a 10.5% increase recorded earlier in the year.

The slowdown reflects broader trends affecting Southeast Asia’s economic landscape.
Analysts attribute the decline to heightened tariffs on key Thai products, including
electronics and agricultural goods, imposed during ongoing trade tensions between
the U.S. and China. The Thai economy heavily depends on exports, which constitute
about 60% of its GDP. As global trade dynamics shift, businesses are feeling increased
pressure to adapt.

In a bid to mitigate these challenges, Thailand is exploring new trade agreements
with countries in Asia and Europe, aiming to reduce dependence on any single market.
Officials have also emphasized the importance of stimulating domestic consumption
as a buffer against external shocks.

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As Thailand navigates these turbulent waters, the government remains optimistic.“
We believe that strengthening our production capabilities and global partnerships
will help us weather these challenges,” said Minister of Commerce Jurin Laksanawisit.

While the long-term outlook remains uncertain, the current export slowdown highlights
the intricate connections of global trade and the vulnerabilities faced by countries
reliant on international markets.

_Sources: Thai Ministry of Commerce_