Thailand recorded a record trade deficit of US$19.2 billion with China from January to April 2025, according to the Trade Policy and Strategy Office (TPSO).

Imports from China totaled US$31.6 billion, while exports reached only US$12.3 billion.

In April alone, imports hit a monthly record of US$8.8 billion, while exports rose 3.2% year-on-year to US$3.6 billion, resulting in a US$5.3 billion trade deficit for the month.

The surge in imports was driven by electrical machinery and parts (US$1.7 billion) general machinery and components (US$848.2 million), and computers and related parts (US$506.8 million).

Businesses are securing raw materials and components amid global trade uncertainties and potential US tariff changes.

The US, Thailand’s largest export market with a 19% share, will likely influence trade dynamics as its tariff policies take shape in the second half of the year.

🔗 Source: The Nation Thailand

🧠 Food for thought

1️⃣ Thailand caught in a strategic dilemma between its largest export market and import source

Thailand’s record trade deficit with China highlights the country’s precarious position in the ongoing U.S.-China trade tensions.

The U.S. is Thailand’s largest export market, accounting for 17% of total exports, while China has become an increasingly dominant source of imports 1.

This creates a complex situation where many Thai exports to the U.S. actually incorporate components sourced from China, making Thailand vulnerable to tariff policies from both economic giants 1.

The current 90-day tariff truce provides only temporary relief, as Thai businesses must navigate the uncertainty of what happens after this period expires, particularly since the effective U.S. tariff rate on Chinese goods remains around 40% 2.

Thailand’s position reflects the challenges faced by many Southeast Asian nations that have become integrated into supply chains involving both Chinese components and American markets.

2️⃣ Thailand’s widening trade deficit reflects broader ASEAN challenges with Chinese export surge

Thailand’s record $19.23 billion deficit with China in early 2025 is part of a regional pattern affecting ASEAN countries dealing with China’s industrial overcapacity.