Trump’s auto tariffs are likely to hit an emerging Asian auto hub, showing there are risks for investors everywhere
From Yahoo Finance: 2025-03-28 15:05:00
Thailand’s auto industry faces uncertainty as Trump’s 25% tariffs on auto imports loom. Carmakers’ stocks and global supply chains are affected, with Thailand as a vulnerable manufacturing hub. The country’s auto part exports and benchmark SET Index are already feeling the impact, signaling potential challenges ahead.
Thailand’s auto industry vulnerabilities highlight global investor concerns as Trump’s trade war escalates. The country’s auto shipments to the US are just a fraction of exports, but weak global demand could hurt auto part shipments. Nomura analysts warn of medium-term threats to Thailand’s key industry, prompting investors to diversify away from volatile markets.
Trump’s 25% tariffs on imported vehicles and auto parts are set to take effect soon, impacting domestic and foreign auto industries. The executive order cites pandemic disruptions to supply chains and unfair practices in foreign auto industries. Stocks of major car manufacturers like Toyota and Hyundai have already taken a hit in anticipation of the tariffs.