Thailand Posts Trade Gap for 1st Time in 4 Months

Thailand unexpectedly recorded a trade deficit of USD 1.96 billion in August 2025, reversing from a USD 0.26 billion surplus in the same month last year and missing expectations of a USD 0.68 billion surplus. This was the first trade deficit since April, as exports rose less than imports. Exports grew 5.8% year-on-year, easing from a 11.0% surge in June, marking the slowest pace in 11 months and falling short of market forecasts of a 9.5% rise. The moderation was largely driven by much softer growth in shipments to the US (12.8% vs 31.4%), dampened by the imposition of new US tariffs. Thailand and the US reached a new trade agreement in late July, imposing a 19% tariff on Thai imports. Imports increased 15.8% year-on-year, accelerating sharply from a 5.1% rise in July and exceeding expectations of a 9.3% increase. For the first eight months of 2025, Thailand registered a trade gap of USD 1.70 billion, with exports and imports advancing 13.3% and 11.3%, respectively.