Very high degree of uncertainty in Thailand over US tariffs, central bank chief says
BANGKOK, May 9 (Reuters) - The impact on Thailand from the United States' tariff policy creates a very high decree of uncertainty, the central chief bank said on Friday.
The impact will be more clear in the second half of the year, Bank of Thailand Governor Sethaput Suthiwartnarueput told a press briefing.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Auto Blog
an hour ago
- Auto Blog
Trump Tariffs to Add $1,760 to New Car Prices in 2025
Automakers Expected to Pass Tariff Costs to Consumers If you've been saving your pennies, hoping to scrimp together enough money to afford the new vehicle you've been wanting, you may need to dig deeper into the couch cushions. Its price is likely to go up by nearly $2,000 – and possibly a good bit more thanks to Pres. Donald Trump's new tariffs on imported autos and auto parts. All told, automakers will take a $30 billion hit this year due to the new trade sanctions and while manufacturers will swallow some of the tab, predicts a new study, they'll pass 80% of the cost onto consumers. Don't be surprised to see some products disappear from the market entirely, said suburban Detroit consultancy AlixPartners, especially some of the import models likely to be hit hardest by the new tariffs. Land Rover Defender 90 'A Big Wall of Cost' 'These tariffs bring a big wall of cost,' Mark Wakefield, the head of AlixPartners' auto practice said during an online briefing with reporters, with 'consumers taking the majority of the hit.' If there's any shred of a silver lining to the 2025 AlixPartners Global Automotive Outlook it's that we could see the White House continue to revise its tariffs on import autos and auto parts, even as it works up trade deals that. The consultancy anticipates this will eventually lower the sanctions from 25% to an average closer to 7.5%. Even Domestic Models Will be Impacted The White House has rolled out an assortment of new tariffs and has yet to fully lock down the rules, David Steinert, a partner in the AlixPartners auto practice, said during a follow-up interview with Autoblog. 'The tariffs have changed a lot over the last 60 days,' and will likely continue to be revised in the months ahead. As a result, it's difficult to come up with hard numbers – but the consultancy's 'best guess,' he added, is that the typical vehicle will cost at least $1,760 more than before the tariffs went into effect. And for foreign-made luxury models that could ran into the tens of thousands. Autoblog Newsletter Autoblog brings you car news; expert reviews and exciting pictures and video. Research and compare vehicles, too. Sign up or sign in with Google Facebook Microsoft Apple By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. 'Vehicles that are produced in the US today are the most advantaged,' Steinert said, 'but even domestically-sourced vehicles bring in lots of (foreign-made) parts' that are now subject to tariffs. And the duties will be especially high if those parts come in from China. Entry-Level Cars May Vanish as Costs Rise Automakers are expected to pass on about 80% of their tariff costs – though they won't do it uniformly, the AlixPartners study anticipates. 'Entry-level and mainstream cars will have less of a pass-through' than luxury and exotic models, explained Steinert. Automakers want to avoid driving budget buyers out of the new vehicle market. On the other hand, with 'higher-end brands, with customers who are less price-sensitive, more of the tariffs (will be) passed through.' In some cases, manufacturers may not find it worthwhile to absorb tariff costs. Nissan has already decided to dump the Versa, what is today the most affordable product line in the U.S., at the end of this year, according to Automotive News. Even some higher-end models could be dropped, said Steinert, if manufacturers find higher prices dry up sales. Luxury and Imported EVs Face Steepest Increases Battery-electric vehicles are seen as especially vulnerable, warned AlixPartners. A number of today's models, such as the Audi Q5 e-tron and Mercedes EQE sedan, are imported and face hefty tariffs. Even domestically assembled models, like the Tesla Model Y, typically rely on batteries either shipped in from China or built domestically using Chinese raw materials. Complicating matters: the federal budget bill backed by the Trump administration and now working its way through Congress. It is expected to eliminate federal tax credits of up to $7,500. And, said Wakefield, buyers are likely to 'follow their pocketbook' and stick to more affordable vehicles with internal combustion engines. In its 2023 Global Automotive Outlook, AlixPartners forecast EVs would account for 31% of the U.S. market. It now anticipates a figure closer to 17%. Source: Mercedes-Benz New Car Sales Likely to Decline Through 2027 Conventional wisdom suggests the new tariffs will result in declining new vehicle sales. The real question is how much of a slump might they trigger. Last month, Cox Automotive forecast demand could drop to as low as 15 million, about 1 million below the 2024 total. And the study warned that could dip into the low 14 million range in the event of a recession. For his part, AlixPartner's Wakefield is more upbeat. He thinks the U.S. market will decline by about 1 million – but over a three-year period – and then begin to bounce back. But there's a caveat. This would require the Trump administration to deliver on its promise to negotiate new trade agreements with key partners. So far, however, it's struggling to follow through, with only one big deal in place with the United Kingdom. About the Author Paul Eisenstein View Profile
Auto Blog
an hour ago
- Auto Blog
Audi May Take Drastic Action To Dodge Tariffs
German Media Fears Massive Costs The ongoing uncertainty around how bad tariffs may get ahead of the July 9 deadline for agreement, for European automakers in particular, is no reason to stay idle. Regardless of what the final impact will be, tariffs aren't going anywhere anytime soon, and according to German magazine Der Spiegel, Audi is considering building a production facility somewhere in the southern U.S. to minimize the effects. But it's not an easy call to make. As noted by Automotive News, building a plant here would be 'the more expensive option out of a number of scenarios being considered, with company sources estimating costs of up to €4 billion (approximately $4.6 billion). So will it happen anyway? An Audi spokesperson has confirmed that the automaker intends to build its U.S. presence, but that's typical non-committal public relations speak. 0:04 / 0:09 Walmart is selling a 'heavy duty' $89 step ladder for $48, and shoppers say it's 'sturdy and secure' Watch More Audi Will Make A Decision This Year, Probably Source:'We are currently examining various scenarios for this. We are confident that we will make a decision this year in consultation with the [Volkswagen] Group on how this will look in concrete terms,' the spokesperson wrote in an email. Audi has been rumored to be examining the viability of a U.S. plant for several years, but up until now, the automaker has been performing relatively well in America, although Audi's 2024 sales showed a sharp year-on-year decline of 14%, indicating that changes must be made somewhere, regardless of current or future tariff measures. To help effect that change, Audi is working on a fresh new design language, and U.S. manufacturing (or at least assembly) may help future arrivals find broader appeal with competitive pricing. BMW has been producing cars in South Carolina since 1994, and in those 30-odd years, it's grown to become the largest automotive exporter by value in the U.S. Perhaps Audi would benefit from a similar approach. Where Audi Could Put Down Roots As part of the Volkswagen Group, Audi wouldn't necessarily have to start from scratch. The VW brand operates a plant in Chattanooga, Tennessee, where the ID.4 EV and the Atlas and Atlas Cross Sport SUVs are produced, and its Scout Motors brand is building one in Columbia, South Carolina. But that's it – Porsche won't be moving production to America because its sales volumes would not justify such extensive investment, and its customer base is not unused to absorbing exorbitant price increases. As we noted earlier, Audi hasn't made a decision yet because it's exploring other options. One of those reportedly is to negotiate a tariff import deal with the U.S. government, which compatriot automakers BMW, Mercedes-Benz, and VW are said to be collaboratively pursuing alongside the Ingolstadt-based manufacturer. BMW and Mercedes are the only exporters in this group, but all have made significant investments in the U.S. About the Author Sebastian Cenizo View Profile
Reuters
4 hours ago
- Reuters
Japan scraps US meeting after Washington demands more defense spending -FT
WASHINGTON, June 20 (Reuters) - Japan has canceled a regular high-level meeting with its key ally the United States after the Trump administration demanded it spend more on defense, the Financial Times reported on Friday. U.S. Secretary of State Marco Rubio and Defense Secretary Pete Hegseth had been expected to meet their Japanese counterparts in Washington on July 1 for annual 2+2 security talks. But Tokyo scrapped the meeting after the U.S. side asked Japan to boost defense spending to 3.5 per cent of GDP, higher than an earlier request of 3 per cent, the paper cited unnamed sources familiar with the matter, including two officials in Tokyo, as saying. A U.S. official who did not want to be identified confirmed Japan had "postponed" the talks but said the decision was made several weeks ago. The source did not cite a reason. A non-government source familiar with the issue said he had also heard Japan had pulled out of the meeting, but not the reason for it doing so. U.S. State Department spokesperson Tammy Bruce said she had no comment on the FT report when asked about it at regular briefing, and the Pentagon also had no immediate comment. Japan's embassy in Washington did not respond to a request for comment. The Financial Times said the new higher spending demand was made in recent weeks by Elbridge Colby, the third-most senior Pentagon official, who has also recently upset another key U.S. ally in the Indo-Pacific by launching a review of a project to provide Australia with nuclear-powered submarines. In March, Japanese Prime Minister Shigeru Ishiba said that other nations do not decide Japan's defense budget after Colby called in his nomination hearing to be under secretary of defense for policy for Tokyo to spend more to counter China. Japan and other U.S. allies have been engaged in difficult trade talks with the United States over U.S. President Donald Trump's worldwide tariff offensive. The FT said the decision to cancel the July 1 meeting was also related to Japan's July 20 Upper House elections, at which the ruling Liberal Democratic Party is expected to suffer a loss of seats. It comes ahead of a meeting of the U.S.-led NATO alliance in Europe next week, at which Trump is expected to press his demand that European allies boost their defense spending to 5 percent of GDP.
