Thailand’s Trade Deficit Significantly Increases

Thailand’s trade deficit widened to USD 3.3 billion in April 2025, due to slower export growth of 10.2% and a 16.1% surge in imports, exceeding market expectations.

Thailand’s trade deficit has indeed widened in 2025, driven by several factors. According to recent data, the country recorded a trade deficit of $3.3 billion in April 2025, a significant increase from previous months. For instance, January 2025 saw a deficit of $1.9 billion, compared to $10.6 million in the prior month. This marks a continuation of Thailand’s trade deficit trend, with the country experiencing deficits for three consecutive years (2022–2024) due to structural issues like high energy import costs and weak export performance.

A major contributor to the growing deficit is Thailand’s trade with China, which hit a record high of $19.23 billion from January to April 2025, fueled by soaring imports of raw materials as businesses brace for global trade uncertainties, particularly potential U.S. tariff hikes. Imports from China, including electronics, machinery, and chemicals, have outpaced Thailand’s agricultural exports like rubber, rice, and seafood. Meanwhile, Thailand’s trade surplus with the U.S., its largest export market, was $35.4 billion in 2024 (U.S. estimates cite $45.6 billion), prompting concerns about new U.S. tariffs that could cost Thailand $7–8 billion in exports.

High energy prices remain a structural challenge, with every $10 per barrel rise in global crude oil prices increasing Thailand’s deficit by approximately $4 billion. Despite a 13.6% year-on-year export increase in January 2025, driven by pre-orders amid U.S. tariff fears, imports rose faster at 16.1% in April, exacerbating the deficit. The government is responding by boosting U.S. imports (e.g., ethane, corn, soybeans) and lowering taxes on American goods to reduce the U.S. trade surplus to $20 billion, though no timeline has been specified.

Exports increased by 10.2% year-on-year, marking the tenth straight month of growth, though this was slower than the 17.8% rise seen in March. Still, it outperformed market forecasts of a 9.1% increase.

In contrast, imports surged by 16.1%, continuing an eleven-month growth streak, and significantly exceeding expectations of a 7.0% increase. This sharp rise from a 10.2% increase in the previous month contributed to the widening trade deficit.