Trump's Import Tariff Will Be Called A Big Impact For Indonesia

JAKARTA - Indonesia is a country that will be heavily affected by the decision of the President of the United States (US) Donald Trump to increase the import rate by 32 percent.

Indef Program Director Eisha Maghfiruha Rachbini said on an annual average, Indonesia's share of export markets to US destinations was 10.3 percent, the second largest after going to China. With the application of the new import rate, of course, it will have a direct impact on production in Indonesia.

"The application of new import rates on Indonesian export products to the US will have a direct impact. The new import rate will cause a significant decrease in Indonesia's exports to the US," said Eisha, Friday, April 4.

Furthermore, Eisha explained in detail the various products that would be affected, including textiles, footwear, electronics, furniture, as well as agricultural and plantation products, such as palm oil, rubber, and fishery.

"In theory, with the application of tariffs, there will be a trade diversion from low-cost markets to high-cost markets. It will have an impact on high costs for exporters for superior commodities, such as textiles, footwear, electronics, furniture, and agricultural products. The impact is slowing production and reducing employment opportunities," he explained.

Earlier, US President Donald Trump, on Thursday US time, announced a new import tariff policy targeting a number of countries, including some of the US's closest trading partners.

In a speech at the White House's Mawar Park with a US flag background, Trump applied a high import rate to China and the European Union. He called the day a Independence Day. "For years, our country has been exploited by various countries, both allies and opponents," Trump said.

Apart from Indonesia, China was also affected by this policy at a rate of 34 percent. The Bamboo Curtain country was the first to be called by Trump when announcing a new tariff policy.

In the ASEAN region, several countries are also subject to high import rates, such as Thailand with 36 percent and Vietnam with 46 percent. Not only Asian countries, but US allies were also affected by Trump's import tariff policy, including the European Union 20 percent, Japan 24 percent, and South Korea 25 percent.