TEMPO.CO, Jakarta - Finance Minister Sri Mulyani commented on U.S. President Donald Trump’s policy plan to impose a 25 percent import duty for steel products. Many people worry that the policy will have an effect towards Southeast Asian countries such as Indonesia.
“If the rhetoric of retaliating through tariffs happen, history has proven that it is bad for the global economy if a trade-war takes place,” said Sri Mulyani at the Coordinating Ministry of Economic Affairs today, March 6.
However, Sri Mulyani was reluctant to comment any further, she said that the U.S. itself is still faced with dynamics regarding that specific policy between President Donald Trump and members of the senate and congress.
China as one of the largest steel producers in the world, that sells its product to the United States, is predicted that it would look for other alternative markets such as ASEAN countries including Indonesia.
According to the World Steel Association, China’s steel production in 2017 reached 831.7 million metric tons where most of it were used domestically while 95 million tons were exported.
Coordinating Minister for Economic Affairs Darmin Nasution does not deny that Chinese-produced-steel will end up going to markets other than the North American market if the US Government does adopt the policy.
“It is still too early to react. We will coordinate it first with the Minister of Industry,” said Darmin in responding to Donald Trump’s policy.
Dewi Nurita
