Analysts predict tariff of 19-20% on Thai goods

Investors are eagerly monitoring the upcoming US decision on import tariffs for Thai goods, as analysts anticipate a rate in line with regional peers of 19-20%, but not exceeding 25%.

- NUNTAWUN POLKUAMDEE

Koraphat Vorachet, head of research at Krungsri Securities (KSS), said global trade sentiment improved recently.

A breakthrough trade deal between the US and Europe helped ease pressure, with the US agreeing to a 15% tariff rate in exchange for US$750 billion in European gas imports and $600 billion in investment.

US President Donald Trump also signalled that global tariff frameworks should not exceed 15-20%, lifting confidence among global investors.

“KSS sees a 25% tariff ceiling for Thailand as a potential strategic upside for Thai exporters and foreign direct investment in the country,” said Mr Koraphat.

A top sector to watch this week is energy, helped by rising oil prices and improved trade sentiment, noted the brokerage.

Crude oil prices have rebounded by 2.36% in response to an improved trade outlook, supporting Thai energy stocks, which account for around 10% of total market capitalisation on the Stock Exchange of Thailand (SET).