US Tariffs an Opportunity for Asian Manufacturers

Although the US decision to charge tariffs on consumer tyres produced in China has presented the country’s manufacturers and importers of the product with a sizeable hurdle to their business, the Kasikorn Research Center, a subsidiary of Thailand’s Kasikornbank, believes the decision presents Thai exporters with a major opportunity to increase their market share.

The Bangkok Post reports that passenger car tyres from Thailand previously sold for an average of US$39.82 each in the US market, compared with $30.96 for Chinese tyres. Thai tyres for small trucks were priced at $66.41, compared with $50.97 for Chinese tyres. The tariffs that took effect on September 26 elevate the price of Chinese tyres to match those made in Thailand. The Kasikorn Research Center thus believes the export value of Thai tyres to the US could potentially reach $225 million, well above the earlier estimate of $125 million.