BANGKOK — Thailand’s industrial sentiment index fell for a fourth straight month in June, hitting its lowest level in nine months due to worries over the impact of US tariffs, the Federation of Thai Industries said on Wednesday.
Thailand faces a 36 percent tariff from Washington if a deal cannot be reached before August 1.
The FTI said its industrial sentiment index dropped to 87.7 in June from 88.1 in May. The survey was conducted before Thailand received its August tariff notification.
Finance Minister Pichai Chunhavajira said last week a revised trade proposal from Thailand had not yet been considered by the United States, but he expressed confidence that a reduced rate could be agreed by the two countries before the August 1 deadline.
Thailand should weigh the need to give complete market access to the United States, like Vietnam and Indonesia, said FTI Vice Chairman Nava Chantanasurakon.
Vietnam and Indonesia now face US tariffs of 20 percent and 19 percent, respectively, significantly lower than the levels announced in April.
“Comparisons are already being made, but our negotiation team is capable,” he said.
The United States was Thailand’s largest export market last year, accounting for 18.3 percent of total shipments, or $54.96 billion. Washington has put its deficit with Thailand at $45.6 billion.
Southeast Asia’s second-largest economy has struggled with tepid consumption, soaring household debt, slowing tourism, trade uncertainty and steep US tariffs. The economy now faces a new round of political turmoil that could bring down Prime Minister Paetongtarn Shinawatra or her ruling Pheu Thai party.
