TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

The impact of Trump’s tariffs and the resilience of Indonesia’s financial system

The impact of US tariffs on countries around the world cannot be ignored in the broader context of global protectionism, and Indonesia's solution to pursue dialogue is part of a multilayered, rational strategy that considers the long term in the nation's interest.

Andry Asmoro (The Jakarta Post)
Premium
Jakarta
Wed, April 9, 2025 Published on Apr. 8, 2025 Published on 2025-04-08T16:31:46+07:00

Change text size

Gift Premium Articles
to Anyone

Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
The impact of Trump’s tariffs and the resilience of Indonesia’s financial system A cargo ship loaded with containers is docked at the Port of Oakland in California on March 6, 2025, as trade tensions escalate over United States tariffs. (Reuters/Carlos Barria)

T

he world is once again facing a sharp shift in the trade landscape. The return of Donald Trump to power, accompanied by aggressive tariff policies, marks a new chapter in the ongoing rise of protectionism. While globalization and economic openness were once dominant norms, the current direction is the reverse, with major countries strengthening their economic defenses and treating trade as an instrument of power.

The first wave of Trump’s tariffs targeted a range of strategic products, from steel and aluminum to semiconductors. Several countries were affected, including China, the United States’ primary target, which responded by raising its own tariffs against American goods and fueling speculation over potential devaluation of the yuan against the US dollar.

However, not all countries have responded to US tariffs in the same way. Beyond the major economies capable of mounting resistance, many developing nations have taken a more flexible approach.

Vietnam, for example, surprised the global community by eliminating all tariffs on US-origin goods. This was not a sign of capitulation but a strategic move to preserve trade relations, attract investment and position itself as a strategic partner to the United States.

Indonesia may pursue a similar path: The government has reiterated its commitment to building a fair and balanced trade relationship with the US. As a positive signal, Indonesia has opened import channels for several strategic commodities from the US, such as cotton, wheat and liquefied natural gas (LNG).

This approach reflects Indonesia’s view of trade not as a battleground, but as a negotiation space that requires calm calculation and diplomacy.

Prospects

Every Monday

With exclusive interviews and in-depth coverage of the region's most pressing business issues, "Prospects" is the go-to source for staying ahead of the curve in Indonesia's rapidly evolving business landscape.

By registering, you agree with The Jakarta Post's

Thank You

for signing up our newsletter!

Please check your email for your newsletter subscription.

View More Newsletter

One systemic consequence of Trump’s tariff policies is the resurgence of “reshoring”, where multinational companies relocate production facilities back to their home countries or to partner nations that are safe, politically and tariff-wise. Several US companies in the semiconductor and pharmaceutical sectors have begun building domestic production capacity to reduce dependence on China.

to Read Full Story

  • Unlimited access to our web and app content
  • e-Post daily digital newspaper
  • No advertisements, no interruptions
  • Privileged access to our events and programs
  • Subscription to our newsletters
or

Purchase access to this article for

We accept

TJP - Visa
TJP - Mastercard
TJP - GoPay

Redirecting you to payment page

Pay per article

The impact of Trump’s tariffs and the resilience of Indonesia’s financial system

Rp 35,000 / article

1
Create your free account
By proceeding, you consent to the revised Terms of Use, and Privacy Policy.
Already have an account?

2
  • Palmerat Barat No. 142-143
  • Central Jakarta
  • DKI Jakarta
  • Indonesia
  • 10270
  • +6283816779933
2
Total Rp 35,000

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.

Share options

Quickly share this news with your network—keep everyone informed with just a single click!

Change text size options

Customize your reading experience by adjusting the text size to small, medium, or large—find what’s most comfortable for you.

Gift Premium Articles
to Anyone

Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!

Continue in the app

Get the best experience—faster access, exclusive features, and a seamless way to stay updated.