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(Bloomberg) — Thailand is set to increase imports of US ethane and agricultural products, a government official said, in a bid to prevent damage to its export-driven economy as the Trump administration threatens countries with trade wars.
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The government has asked Thai petrochemical companies to significantly step up the purchase of US ethane by at least 1 million tons, Pongsarun Assawachaisophon, a deputy secretary-general to Prime Minister Paetongtarn Shinawatra, told Bloomberg News on Tuesday. The market value of 1 million tons is about $200 million.
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“We’re being proactive and hope that we can leverage this in our talks with the US,” he said, adding the government is considering efforts to strengthen defense and security relations. “Their great trade deficit with us will likely be negotiated, but they also still need an ally in Southeast Asia.”
Thailand lists the US as its second-largest trading partner and it had a surplus of around $35.4 billion with the North American country in 2024, according to data from the Thai Commerce Ministry. President Donald Trump has railed against several economies that run a surplus with the US, slapping tariffs on rivals and allies alike.
Thai feed mills will also import more soybean meal and other agricultural products to use in their feed mix for cattle, poultry and pigs, Pongsarun said, without specifying the additional import volume.
The current major importers of US ethane are China, India, Canada and Norway, according to the US Energy Information Administration. Ethane is consumed almost exclusively in the petrochemical industry as a feedstock, it said.
Thailand’s export-reliant economy could take a heavy hit from US tariffs. The country is dispatching Commerce Minister Pichai Naripthaphan to the US this week for possible meetings with trade officials in a bid to head off any tensions.
—With assistance from Stephen Stapczynski.
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