The CEO of one of Thailand’s leading manufacturers says his customers are rushing to stock up during Trump’s tariff pause

Thailand, along with the rest of Southeast Asia, received some temporary assistance when US President Donald Trump chose delay his “Liberation day“Tariffs within 90 days. The US US exports now have only 10% tariff, unlike 36% threatening By Trump.

Asian markets went to the wild, because Trump first opened his mutual tariffs on April 2, falling and climbing according to the president’s statements. Thailand’s benchmark fell by 9% from April 2 to April 9, only Trump rally stated its tariff pause. The index still needs to be restored from the “Liberation Day” hit.

“We thought of mutual tariffs, they were too high,” said Victor Cheng, CEO of Thai Delta Electronics, who took place by Trump, stated his tariff pause.

The US actions caused “anxiety and great concern,” Chennai said that customers still need to change or cancel any order due to tariffs. Later, Cheng added that Trump has stopped its tariffs that customers use a 90-day break for reciprocal tariffs “Storage”.

The General Director also explained why his American customers, not his company, “will have to bear the extra tariff at the top of the original sales price.” He notes that most of Delta Electronics is classified as a “free board”, which means that his company is the seller, the US Customer.

Who pays for tariffs, a major political point on discussions on victory in trade policy, the president and his supporters claim that the foreign government or company pays for tariffsMost of a number of trade specialists say that in reality it is the importer that pays. Then can pass some if not all of the end consumers for extra costs. (Large importers such as Walmart can also force foreign suppliers to take the price haircut)

Still, Chen was worried that the sharp tariffs of the United States will still affect his company, placing additional cargo on its customers and exploding inflationary pressures.

“Tariffs will definitely have a certain impact. The mild level will be good … But high tariffs above 15% will be difficult to take by any party.

Chen noted that the Thai government reached industry associations and individual companies during the Liberation Days, to understand how tariffs on their business. He predicted that Thailand lowered the tariffs for US goods and would go more to American goods, coordinating with the governments of its southeastern Asian as an alliance with the United States.

Thailand will send a delegation to the USA Start trading negotiations The government said next week.

Focusing on EVS and data centers

Delta Electronics Thailand makes and distributes electronics, particularly energy components that are used in items, including electric vehicles and data centers. The company currently works with European and American batteries, but Chen says that Delta ELECTRONICS is beginning to study the work of Chinese ev producers Create production capacity In Thailand.

The adoption of EV is growing in countries like Thailand, Malaysia and Singapore, in particular, due to the debut of government incentives and the debut of Chinese cars. Southeast Asia proves it is catching China market by China due to its neighborhood and its more market policy.

Electric cars amounted to 33.6% of all new cars in Singapore from 18% of 2023, according to government data. Neighboring Malaysia, EV Sale: jumped 19% for breaking 45,000; The sale of EV has more than doubled in Indonesia, reaching 43,000 points.

Cheng is optimistic that Thai delta Electronics was preparing to tap in that expanding demand.

“Here in Southeast Asia, we have seen a certain success with EV charger. We see if it is AC or it is gradually growing, “Cheng explained.

As for the business center’s business, Thailand Thailand noted that American companies are a significant base of customers, but have refused to give special names from AI Chip Head NVIDIA.

What is Delta ELECTRONICS Thailand?

Delta Electronics Thailand is a subsidiary of Delta Electronics, a manufacturer of Taiwanese electronics. The Booming EV industry helped drive income, profit and share prices, which helped to make a subsidiary more valuable than his parent company.

Delta Thailand Electronics also spent most of 2024 as the most valuable Thai company, about $ 64.1 billion in a market value last year.

The price of adolescent shares was slipped, especially after the company reported earnings in mid-February. The company’s shares have lost more than 50% of their value from the top of November. During the same period, the collection has fallen more than 27%.

In the report of Yugi Keykimima, Maybank Securities Research Analyst warned that the costs and uncertainty of how a new global minimum tax could be increased for corporate earnings.

The minimum world tax is called to discourage multinational companies to fix unnecessary profits in low tax authorities, companies pay minimum tax level in every jurisdiction for their income.

Delta Electronics Thailand was previously subject to 5.5% tax 2023.

Cheng has previously interpreted These Delta Electronics Thai stock prices may be overestimated, noting that the price of earnings was “passed on the roof.”

He reaffirmed that mood with his conversation Fortune And he noted that the prices of the stock received “a little too speculative”.

Chen said that he is focused on the tariff plan on the “Business Basics”. He said Delta Electronics Thailand’s income is still on a healthy level, and he is growing year by year. Income for 2024 has reached 164.7 billion fortunes ($ 4.9 billion) increased by 12.5% ​​compared to the previous year. The income of 2023 Baht ($ 4.4 billion) was 23.5%, over 2022 and conditioned by its mobility group (EV).

But even EV growth moderation, Chen is positive about AI’s infrastructure. At the beginning of the year, the company designed the “Two-digit income growth” due to investment.

“Ai Build is a great stimulus for the support of income this year, and we also see some positive benefits for profit,” he said.

This story was originally shown Fortune.com