Jakarta -The Indonesian government insists it will not rush in determining the policy to respond to the issue of trade war between the US and China.
“Let it be a trade war, yes, it’s continued from the previous policy they took,” said Coordinating Minister for Economic Affairs Darmin Nasution in Jakarta, Friday (23/3/2018).
As is known, one focus of discussions of the G-20 countries in Argentina a few days ago is a protectionist and inward-oriented economic policy. Protectionist policy is feared could trigger the emergence of trade war.
According to Darmin, the results of trade war are not always negative against the domestic economy. He said goods that can not enter the US are likely to enter the domestic market at a cheaper price.
“Positively, if the goods that were not sold there [US] brought here at a lower price, our customers can be cheaper,” explained Darmin.
However, he does not deny if the imported goods that come with such cheap prices can disrupt domestic business actors.
“Entrepreneurs who produce the same goods get more rigorous competition,” added Darmin.
As is known, China said it would counter retaliatory US import tariff policy. Xi Jinping’s government has compiled a list of 128 US-based products that could be targeted for import tariffs if both countries can not reach a trade agreement.
Panda is considering imposing a 15% import tariff on US dried fruit, wine, and pipe products. Meanwhile, recycled pig and aluminum products will likely be charged at 25%.
Previously, Trump signed a memorandum containing a plan to impose a US $ 60 billion import tariff on a number of Chinese products. This is based on claims of abuse of US intellectual property by Chinese companies.
The Trump step follows a 25% import tariff for steel products and 10% of aluminum products including those from China, recently. The policy is in the spotlight of the world as it is seen as a form of protectionism that must be resisted and feared could trigger a trade war.
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