BANGKOK- Thailand’s industrial sentiment in March fell for the first time in three months, with a future index pointing to a further fall on concerns about US tariffs, the Federation of Thai Industries said on Tuesday.
The FTI’s industrial sentiment index dropped to 91.8 in March from 93.4 in February.
Another FTI index that projects sentiment over the next three months also fell for the first times in three months, to 95.7 in March from 97.6 in a previous survey, the FTI said.
Thailand is among the Southeast Asian nations hardest hit by US President Donald Trump’s measures, with a 36 percent tariff imposed.
However, a 90-day pause on the US tariffs is positive, giving Thailand more time to prepare, ApichitPrasoprat, FTI vice chairman, told a briefing.
Earlier on Tuesday, Prime Minister Paetongtarn Shinawatra said Thai-US trade talks had been postponed from April 23, without giving a reason.
The United States was Thailand’s largest export market last year, accounting for 18.3 percent of total shipments, or $54.96 billion. Washington has put its deficit with Thailand at $45.6 billion.
Thailand’s export growth in March was higher than February’s 14 percent annual rise, while tariff negotiations with the United States set for this week are expected to proceed positively, the commerce minister said on Monday.
Pichai Naripthaphan said exports, a key driver of the Thai economy, would continue to grow if the negotiations went well.
“I believe the outcome of the negotiations will likely be good and have a high chance of success,” he told reporters, citing the strong relationships between the two countries.
The tariff of 36 percent placed on imports from Southeast Asia’s second-largest economy is among the higher rates imposed by US President Donald Trump›s administration.
A delegation led by Finance Minister Pichai Chunhavajira will meet US officials in Washington on April 23, to seek lower tariffs.
The United States was Thailand’s largest export market last year, accounting for 18.3 percent of total shipments, or $54.96 billion. Washington has put its deficit with Thailand at $45.6 billion.
