Jakarta -The governments of the United States and China are both preparing plans for imposition of import tariffs between the two countries to a value of US $ 50 billion.
The US government prepared a list of 800 Chinese products subject to high tariffs starting July 6. These products include manufacturing machinery and equipment, electronic goods to transportation.
Meanwhile, the Chinese government responded by imposing a 25% tariff on 659 US products, ranging from soybeans, seafood, to cars worth US $ 50 billion.
“For tariff war or trade war, the current transient effect is pressing down commodity prices which are raised by its import tariffs such as aluminum, steel and soybeans,” said Head of Research and Education of PT Monex Investindo Futures, Ariston Tjendra to Bisnis.com, Monday (6/18/2018).
He said that China is currently the largest producer of aluminum and steel, which is raised by US import tariffs as the largest importer for both commodities.
Meanwhile, the US is the largest producer of soybeans which is raised by its import tariff by China which is the largest importer of soybeans.
“The tariff war will lower demand so as to push prices,” Ariston said.
But he predicted the impact is temporary, because the producer country can find new markets so that prices can be stabilized again.
Is Indonesia able to get a chance to become the new market of the two countries related to these three commodities?
“For the above three commodities (aluminum, steel, soybean), Indonesia is not the largest producer, not even the top 10. so it does not seem to affect the price, “said Ariston.
GIPHY App Key not set. Please check settings