Bangkok: UOB Thailand has released the UOB Business Outlook Study 2025, reflecting the adaptation approach of Thai businesses amid the challenges of the US import tariffs and uncertainty in the global supply chain. It indicated that Thailand will be affected by 36% tariffs in three waves and would like to see the US tariffs on Thailand at 20%.
According to Thai News Agency, Mr. Sathit Tangsat, Senior Vice President at UOB, highlighted the current 36% US tariff on Thailand, explaining that it will affect the country in three distinct phases: direct impact on export businesses, domestic supply chain repercussions, and increased competition from China. Thai businesses are keen to negotiate with the US to reduce tariffs to levels similar to Vietnam’s 20%, leveraging Thailand’s long-standing relationship with the US.
UOB conducted a survey in January 2025 and additional interviews in April 2025 to assess the impact of the US import tariffs. The study revealed that Thai businesses are cautiously adapting by seeking opportunities in the ASEAN region, accelerating digital transformation, and prioritizing sustainable business practices. After the tariffs were announced, over 90% of businesses anticipated greater disruptions in supply chain management, with 68% expected to adopt digital technologies more quickly and 60% viewing sustainability as crucial.
Mrs. Wira-anong Jiranakorn Phutrakul, Managing Director and Deputy CEO of Wholesale Banking at UOB Thailand, emphasized that the study reflects Thai businesses’ ability to adapt to global challenges by exploring regional opportunities, adopting digital tools, and focusing on sustainability. UOB is committed to supporting Thai businesses with financial solutions, expertise, and strong networks in ASEAN.
The survey found business confidence decreased from 58% in 2024 to 52% post-announcement of US import tariffs in April. Small businesses expressed significant concern, with operating costs and inflation as the main pressures. Real estate and service sectors are most affected, and many businesses are implementing cost reduction measures, expanding customer bases, and seeking partnerships to counteract these challenges.
US tariffs have intensified supply chain disruptions, with 90% of businesses focusing on management strategies. Key coping strategies include data analytics, intra-ASEAN trade, and seeking tax incentives, technology access, and workforce training. Digital adoption remains a core strategy, as 68% of businesses plan to accelerate digital transformation, despite concerns over cybersecurity and cost.
Sustainability is recognized by over 90% of businesses, yet only 53% have implemented practices. More than 60% plan to accelerate sustainability measures following the US tariffs, with barriers including infrastructure, costs, and consumer readiness. Many businesses are considering renewable energy solutions and seek guidance in this area.
Thai businesses are accelerating international expansion, particularly within ASEAN, targeting countries like Malaysia, Singapore, and Vietnam. Despite challenges in understanding foreign markets, businesses are driven by revenue and profit growth and need insights and support for successful expansion.
Labor issues remain a significant concern, especially in compensation and flexibility, impacted by AI technology and new generation expectations. Nearly 40% of businesses struggle with talent retention, seeking solutions through increased compensation, digital transformation, and role adjustments within organizations.