Key Facts
In March 2025, Thailand’s industrial sentiment index, as reported by the Federation of Thai Industries (FTI), dropped to 91.8 from February’s 93.4, marking its first decline in three months. The index reflects the overall confidence of the industrial sector in the country’s economic conditions. Additionally, the three-month forward-looking sentiment index also fell, decreasing from 97.6 to 95.7. Both declines are attributed to concerns over U.S. tariffs and their potential impact on Thailand’s economy.
Thailand has been significantly affected by a 36% tariff imposed by the United States under measures introduced during the Trump administration. This tariff has placed considerable pressure on the country’s industrial sector, making it one of the hardest-hit nations in Southeast Asia. However, FTI Vice Chairman Apichit Prasoprat noted that the temporary 90-day suspension of these tariffs offers a positive opportunity for Thailand to prepare and adapt to the challenging trade environment.
Meanwhile, Thai Prime Minister Paetongtarn Shinawatra announced that trade negotiations with the United States, originally scheduled for April 23, have been postponed. The reasons for the delay were not disclosed.
The decline in industrial sentiment highlights the ongoing challenges faced by Thailand’s economy, particularly in navigating international trade tensions. The FTI’s report underscores the need for strategic planning to mitigate the impact of external economic pressures.
Summary
In March 2025, Thailand’s industrial sentiment index, published by the Federation of Thai Industries (FTI), fell to 91.8 from February’s 93.4, marking its first decline in three months. The three-month forward-looking sentiment index also dropped, decreasing from 97.6 to 95.7. Both declines are attributed to concerns over U.S. tariffs and their potential impact on Thailand’s economy.
Thailand has been significantly affected by a 36% tariff imposed by the United States under measures introduced during the Trump administration, making it one of the hardest-hit countries in Southeast Asia. However, FTI Vice Chairman Apichit Prasoprat highlighted the temporary 90-day suspension of these tariffs as a positive development, providing Thailand with time to prepare for ongoing trade challenges.
Separately, Thai Prime Minister Paetongtarn Shinawatra announced that trade negotiations with the United States, initially scheduled for April 23, have been postponed. The reasons for the delay were not disclosed.
The FTI report underscores the challenges facing Thailand’s industrial sector amid international trade tensions, emphasizing the need for strategic planning to address external economic pressures.
