BANGKOK: Thailand’s industrial sentiment declined in March for the first time in three months, reflecting growing unease among manufacturers over the prospect of renewed US tariffs, according to data released by the Federation of Thai Industries (FTI) on Tuesday.
The FTI’s Industrial Sentiment Index dropped to 91.8 in March, down from 93.4 in February. A separate forward-looking index, measuring expectations for the next three months, also registered its first decline in a quarter, falling to 95.7 from 97.6.
Concerns have been heightened by the imposition of a 36% tariff by the United States, a move that has particularly impacted Thailand, one of the Southeast Asian countries most exposed to such trade measures.
FTI Vice Chairman Apichit Prasoprat noted that a recently announced 90-day pause on the US tariffs provides a temporary reprieve, allowing Thai exporters more time to adapt. “While the short-term outlook remains cautious, the tariff pause is a critical window for the industry to recalibrate,” he said during a press briefing.
Compounding the uncertainty, Prime Minister Paetongtarn Shinawatra confirmed that scheduled Thai-US trade negotiations, initially set for April 23, have been postponed, though no new date was provided.
The United States remains Thailand’s largest export destination, accounting for 18.3% of total exports last year, valued at $54.96 billion. Washington, however, continues to cite a $45.6 billion trade deficit with Thailand as a concern.–REUTERS
