SET-listed Siam Cement Group (SCG), Thailand's largest cement maker and industrial conglomerate, is worried about the impact of Washington's new tariff policy on Southeast Asia, as the region is the company's main market.
The economies of many countries in the region will be affected by America's reciprocal tariffs if they fail to negotiate with US President Donald Trump's administration, according to SCG.
The steep tariffs, with a rate of 36% on Thai goods, were initially set to take effect on April 9, but Trump decided to delay enforcement for a period of 90 days, allowing countries that did not retaliate against the tariffs to negotiate on trade matters.
"We are concerned the economy of Southeast Asia will slow down if the reciprocal tariffs are applied. This will affect SCG's businesses in the region," said Thammasak Sethaudom, president and chief executive of SCG.
The company has invested in Thailand, Cambodia, Vietnam, Indonesia and the Philippines.
With Trump's proposed tariffs, some analysts believe Thai GDP will grow by less than 1.8% this year due to economic challenges both domestically and externally.
Mr Thammasak is worried Trump's policy will cause China to export more products to Southeast Asia, intensifying competition in the Asean market for Thai companies.
SCG Chemicals (SCGC), the petrochemical arm of SCG, expects the global petrochemical industry, which is facing a supply glut, to improve if there are no new products from China.
The construction of SCGC's Long Son Petrochemical complex in Vietnam is finished but the company has yet to start commercial operations, pending the result of trade talks between the US and Vietnam, said Sakchai Patiparnpreechavud, chief executive and president of SCGC.
Mr Thammasak called on the Thai government to carefully plan its negotiations with the US and China to avoid a serious economic impact on the Thai economy.
This year, SCG has allocated 30 billion baht for investment projects. The company already spent 6.1 billion from the budget during this year's first quarter.
The company expects its revenue to increase by 5% this year from 511 billion baht in 2024.