Thai Exports Face Headwinds as US Tariffs Shift Trade, Krungthai Compass Reports
BANGKOK, โฃOctober 26, 2025 โค- Thailand’sโฃ exportโค sector isโฃ facing increasing pressure due to shifting trade patternsโ influenced by US import tax policies,โฃ according to a โrecent analysis by Krungthai Compass. While August imports rose 15.8% year-over-year to $29.7076 billion-accelerating from 5.1% YoY in โJuly-the momentum is expected to slowโ as front-loading of purchases diminishes and the impact of โUS tariffs โbecomes clearer.
The import expansion encompassed all categories, including capital products โ(+29.5%โฃ YoY), consumer goods (+16.9% YoY), raw materials โคandโ semi-finished goodsโ (+12.7% YoY), vehicle products (+5.3%), โand a contraction in fuel products (-5.6% YoY).
However, Krungthai Compass notes that โคThai exports โcontracted 2.9% month-over-month in August, marking the โฃthird consecutive month of decline, mirroring trends in other exporting nations.This slowdown follows the โคend of accelerated purchasing driven by anticipated US customs taxโค increases.โข Thailandโค experienced a meaningful drop in โexports toโ the US,fallingโ 9.8% MoM for the second consecutive month. Vietnam โฃalso saw itsโฃ frist contraction in six months, with exports down 2.0% MoM. US imports of key Thai products decreased โข3.6% MoM for โฃtwo months running,and automotive exports fell 2.8% MoM.
Krungthai โคCompass anticipates that Thai exporters will need to reallocate focus away from the US marketโข towardsโฃ countries with lower tax rates.Data suggests a shift inโข US import sources, with increased โฃimports from nations like the Unitedโ kingdom (up 7.2% MoM in July) which have lower customs โขduties. โค
furtherโฃ risks include uncertainty surrounding potential โsectoral tariffs and a โgenerally weakening global economic outlook, which is dampening worldwide demand. The โUNDP1 forecasts that global exports will be negatively impacted โคby US import tax policies, particularly affecting Asian countries reliant on the US โmarket,โฃ including Vietnam (-19.2%), Thailand (-12.7%), and Japan (-10.9%).