Thailand has revised its economic growth forecast downward for 2025, with GDP now expected to expand by less than 2.5%, largely due to new U.S. tariffs targeting Southeast Asian exports. These measures have introduced significant uncertainty for Thailand’s export-driven economy, particularly impacting the steel, electronics, and automotive supply chains.
According to officials, the second half of the year is expected to see the most pronounced economic impact. Manufacturers are beginning to report investment delays and potential production cuts as cost pressures mount.
In response, Thailand’s government is preparing a diplomatic initiative aimed at defusing tensions. The proposal includes increasing imports of key U.S. commodities—such as soybeans, corn, and liquefied natural gas—in a bid to reduce the bilateral trade gap and maintain positive relations.
The tariffs come at a sensitive time for Thailand, as it seeks to position itself as a regional manufacturing hub and supply chain alternative to China. Government agencies are also exploring domestic incentives to support exporters and stabilize employment in the hardest-hit sectors.
Vietnam Steel by Hoa Sen Group
