Thailand’s medical device market dips amidst tariff, political concerns

The US government has maintained a 36% tariff rate on Thai exports

Thailand’s medical device market is projected to expand at a compound annual growth rate of 4.7% in US dollar terms through 2029, down from the previous estimate of 5.4%, according to a BMI report.

The downward revision is attributed to ongoing political instability and uncertainty surrounding US tariffs.

The US government has maintained a 36% tariff rate on Thai exports, following the president’s decision to extend the deadline for tariff negotiations to 1 August.

“Tariffs will increase export costs and reduce the competitiveness of Thai products in the US market, which accounts for a quarter of Thailand’s medical device exports,” the report said.

Market sales are expected to reach $2.8b with consumables, diagnostic imaging, and other devices accounting for the largest shares during the forecast period.

“This challenging trade environment, combined with ongoing domestic political instability, is expected to weigh on market expansion over our forecast period,” it added.