The government of Indonesia is optimistic that the country may benefit from the new tariffs on Chinese goods implemented by Washington. However, businesses in Indonesia do not share this assessment. They warn that Indonesian export goods are not ready to meet the demands of the US market. Coordinating Economic Minister Airlangga Hartarto mentioned to The Jakarta Post that Indonesia might be able to capture some of the market share that would have gone to Chinese exporters. He also stated that Jakarta would be focusing on maximizing critical mineral exports.
Recently, US President Joe Biden increased tariffs on electric vehicles (EVs) and semiconductors from China, accusing Beijing of unfair practices rather than healthy competition. The US government alleges that China is providing subsidies to strategic sectors to undercut foreign competitors and overproduce compared to worldwide demand. China denies these accusations and claims that its manufacturers are simply working efficiently.
The move taken by President Biden is seen as an attempt to appeal to blue-collar voters in swing states by appearing tough on trade before the upcoming election against Donald Trump in November. US Treasury Secretary Janet Yellen urged the European Union to also consider implementing similar measures. The EU Commission president Ursula von der Leyen hinted that Brussels was contemplating following the US lead in imposing tariffs on Chinese goods.
