Chaiwat Nantiruj, Group CEO of Eka Global, stated that the industry must carefully track the implications of the tariff hike and the Thai government's response. Thai food exports to the U.S. are subject to a 36% import tariff. Although the implementation of the new tariff has been delayed by 90 days to allow time for negotiations, the minimum tariff remains at 10%. The company views this as a significant risk factor contributing to volatility in international trade and the global economy.
According to the Center for Economic and Business Forecasting at the University of the Thai Chamber of Commerce, the tariff hike could reduce Thailand's export value by 100-150 billion baht and potentially lower GDP by 0.7-0.9%. However, this projection is only preliminary. Ongoing global trade slowdowns and heightened uncertainty are expected to negatively impact the Thai economy—especially exports to the U.S. In addition, the country could be indirectly affected by the sluggish growth of other trade partners. Intensifying global trade competition also poses further challenges in the future.
"Thailand's food industry—particularly the processed food segment, which previously enjoyed 0% tariffs—will be directly impacted by this situation and lose its competitive edge. Likewise, the pet food industry, one of the country's top export sectors with high export value to the U.S., will inevitably be affected. Thai products are known for their high quality and global recognition, presenting new opportunities for export to additional markets," said Chaiwat.
To prepare for the anticipated impact, Eka Global has been closely monitoring the situation and has taken steps to mitigate potential risks. So far, the company has not observed any direct impact, as orders from clients in its two key sectors—ready-to-eat meals and premium pet food—remain steady. Additionally, its new production facility in Pune, India, which primarily serves the local market, continues to perform well.
"India, with its population of 1.4 billion, represents a vast market. Despite cultural diversity across regions, the younger generation and working population have high access to technology and display modern consumption habits—driving strong demand for ready-to-eat products. Thai food businesses are encouraged to study this market and consumer behavior to uncover new opportunities. In addition, as a member of BIMSTEC—which includes Sri Lanka, Bangladesh, India, and Nepal—Thailand is also well-positioned to expand trade and exports within the region," said Chaiwat.
Eka Global believes that longevity packaging maintains strong competitive advantages due to sustained global demand. This type of packaging aligns with modern lifestyles, as consumers around the world seek packaging that is safe, hygienic, convenient, and designed to make life easier. Eka Global's packaging is produced using advanced technology, offering a shelf life of up to two years. It is free from carcinogenic substances, lightweight, easy to transport, microwaveable, environmentally friendly, and features a modern design.
Source: Make A Wealth