Monday, 12 March 2018 10:04

Indonesia Slams Donald Trump Trade War Policy

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US President Donald Trump announced last week that he would implement a 25 percent import tariff policy for steel and 10 percent for aluminum to US trading partner countries. The policy is Trump's attempt to protect the domestic industry of the United States.In response, Indonesian Vice President Jusuf Kalla said in Jakarta Thursday (8/3) as reported by Republika that so far, Indonesia has not been affected by the tariff policy of steel and aluminum. However, if the import tariff policy is extended to other sectors, Indonesia will react. VP Jusuf Kalla said that Indonesia has a bargaining power with the United States. So far, Indonesia has imported soybeans, maize, wheat and aircraft from America. He also  asserted, if President Trump extends its import tariff policy to palm oil commodity, Indonesia will not hesitate to reduce the import of soybean and wheat from America. He views that the import tariff policy adopted by America is a challenge in global trade. Therefore, food self-sufficiency remains a top priority. He added that food security can be maintained, if productivity is improved. However, the increase in productivity must also pay attention to environmental aspects. So, how to improve productivity with technology and system is that to preserve the environment. Meanwhile, Trade Minister Enggartiasto Lukita said in Jakarta on Friday that Indonesia wants trade partner countries, especially the United States to apply a free and fair trade. He expressed this in relation to the US President step which will apply high import tariffs for steel and aluminum products. MInister Enggartiasto Lukita also disclosed that President Trump's step will not directly bring about a serious impact on Indonesia because Indonesia’s export of steel and aluminum to America is small. However, he asked any country, particularly the United States and Europe to conduct free and fair trade. Minister Enggratiasto percieved that basically, starting a trade war would be disruptive and detrimental. He added that so far, only tariff of steel and aluminum goods are set. However, if later it is also applied on other goods, Indonesia is ready to do the same policy. Take for example the palm oil trade with the European Union. If Indonesia’s palm oil is prevented from entering the EU countries, Indonesia will also take action related to the incoming products, sucha s wine.On the other hand, Indonesian Minister of Finance, Sri Mulyani Indrawati warned the potential trade war, if the United States government really imposes tariffs on steel and aluminum imports. She asserted that the world history shows that when there is a trade war, definitely there is  bad impact on the world economy. MInister Sri Mulyani further said that all countries in the world are waiting for the certainty of the plan. Becasue, this has the potential to make countries that have established trade relations with the USA retaliate each other due to the tariff.

Read 219 times Last modified on Tuesday, 13 March 2018 19:19