Will US Import Tariff Hike on Chinese Products Affect Indonesia?
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10 May 2019 22:15 WIB
TEMPO.CO, Jakarta - Coordinating Minister for Economic Affairs Darmin Nasution said that the United States’ 25 percent import tariff hike on Chinese products may somewhat impinge on Indonesia’s economy.
The minister augured that the simmering trade tension between the two countries would eventually weaken both countries' economy and resulted in multiplier effects on other countries that partnered with either of them.
“Well, of course, it could affect us but we cannot calculate it yet. We are also unaware of Trump’s next move who’s known for his constant change in attitude,” he said at the ministry’s headquarters in Jakarta on Friday, May 10.
Read: IMF Chief: Auto Tariff War Will Hurt More than US-China Fight
Darmin maintained that China’s economy might decelarate following constant trade wars, which would eventually affect Indonesia’s export to China due lower demands.
“China will normally retaliate to the US’ move. So we will feel its effect even without us chiming in the trade war, our trade balance will surely drop,” he said. However, the former Bank Indonesia (BI) governor hoped the trade war would soon settle.
The new 25 percent US import tariff hike is imposed on more than 5,700 Chinese products across numerous categories from vegetables up to Christmas decoration lights.
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