AAI confirms that the US raising import tariffs on Thai goods to 12.5% does not have much impact, as it is a small increase from the previous rate and trading partners have already accepted it. Thailand had previously faced a 19% tariff before it was reduced to 10%. The clarity on the tariff rate has prompted previously hesitant trading partners to resume normal ordering. Managing Director Ekaraj Phansang revealed that AAI still holds a structural advantage in the high-quality wet food segment that requires skilled labor, which US competitors cannot produce at competitive costs. The US market continues to grow 1 to 2% per year despite its already large base, and the company is also pushing ahead with European market expansion while benefiting from a weaker baht that supports profits, as almost all revenue is in foreign currencies while most costs are in baht. The earnings trend for the second half of the year is expected to be better than the first half, in line with orders starting to return.
Asian Alliance International PCLAAI confirms 12.5% US tariff has no material impact and orders are returning after clarity.
Article states weaker baht supports profits, implying baht weakness is beneficial for the company, but no direct policy action on the pair.