Electronics sector braces for tariff thump

Cautious optimism even as levies and baht appreciation take a bite, writes Nareerat Wiriyapong

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As US tariffs and baht fluctuation pose challenges for the electronics industry, Thailand's major export earner, executives see investment and product diversification as key to cushion the impact, while demand for artificial intelligence (AI) and data centres continues to drive revenue growth.

For Delta Electronics (Thailand), the largest company on the Stock Exchange of Thailand (SET) in terms of market capitalisation, many uncertainties remain after the US Supreme Court ruled against President Donald Trump's reciprocal tariffs. Trump responded by announcing a 15% flat global tariff after the ruling.

"Despite the Supreme Court ruling, some existing duties still affect the industry," said Victor Cheng, chief executive of the manufacturer and exporter of power supply, electronic components and equipment.

"Companies should remain adaptable as the environment evolves. For Delta Thailand, we remain in close communication with our customers and suppliers while monitoring developments to ensure we can respond quickly to market changes, maintaining dependable execution."