Trump's Tariff Hikes on China Open Doors for Indonesian Trade Expansion

Jakarta, VIVA – U.S. President Donald Trump has imposed high import tariffs on goods from Canada, Mexico, and China. The tariffs stand at 25% for Canada and Mexico, while China faces a 10% tariff.

In response, the Chairman of the Indonesian Chamber of Commerce and Industry (Kadin), Anindya Bakrie, stated that the impact of these high tariffs on Indonesia still needs to be carefully assessed.

"Regarding Trump, we need to examine how his policies affect Indonesia and BRICS. Based on analyses from 2016 to 2020, his policies have had approximately a 0.2% impact on GDP so far, but we don't know how things will develop in the future," Bakrie said on Tuesday (Feb 4).

However, Bakrie noted that this policy may present an opportunity for Indonesia, particularly in expanding its market with the United States (U.S.).

"The U.S. needs critical minerals from us, so that could be an entry point. We may not have a free trade agreement or even a limited free trade agreement with them, but this situation presents a possibility. After all, President Trump values bilateral trade," he explained.

Regarding the 10% import tariff on Chinese products, Bakrie stated that the business sector has several strategies to address this challenge. The first step is for Indonesia to open new markets beyond the U.S.

"First, we need to explore new markets beyond America. However, the U.S. cannot be ignored. New markets such as BRICS are key," he said.

Second, ASEAN must be strengthened, given its economic growth rate of 4.7%, which is higher than the global average. Third, Indonesia should expand access to the Middle East.

"The Middle East has immense financial resources. However, the U.S. remains crucial due to its large and growing market. This is where skilled diplomats and innovative entrepreneurs are needed to establish partnerships with the U.S., even from a modest starting point," he added.

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5 Juni 2025