Thailand BOI Rolls Out Four Measures to Ease U.S. Tariff Pressure

On May 19, Thailand’s BOI introduced four measures to support local firms facing U.S. tariffs. First, investment incentives will be suspended for oversupplied or trade-sensitive sectors, including solar panels, non-essential auto parts (e.g., lead-acid batteries), metal cutting, non-recycling waste sorting outside industrial zones, and downstream steel products such as long steel, hot-rolled coils, and thick plates.

Second, industries likely affected by U.S. trade actions—like auto parts, electronics, and metal goods—must meet stricter local processing requirements. Products must undergo significant transformation in Thailand to boost export acceptance and protect national interests.

Third, new labor rules require manufacturing firms with over 100 employees to hire at least 70% Thai staff. Foreign workers must meet salary thresholds: THB 150,000/month for executives and THB 50,000 for specialists. SMEs hit by tariffs will get extended tax breaks: from 3 years (max 50% of investment) to 5 years (max 100%), encouraging upgrades in automation and sustainability.

Source: https://hq.smm.cn/photovoltaic/list/12644