This Government Step Anticipates US Trade War – China

Jakarta -The Ministry of Commerce will take a new non-traditional market search step in anticipation of the impact of the trade war that the United States has with China.

Head of Trade Assessment and Development Agency (BP3) Ministry of Trade Kasan Muhri estimates that the US and Chinese trade wars will affect Indonesia’s export performance to both countries.

It is feared that this condition will affect the transfer of exports to Indonesia. Because the US and China are the main export destination countries of Indonesia.

“Exports of steel and aluminum Indonesia to the US in 2017 amounting to US $ 70 million and US $ 219 million is also expected to be disrupted. While Indonesia’s export products to China do not put pressure on Indonesian exports, “said Kasan Muhri, Friday (23/3/2018).

According to him, Indonesia can become a diversion country by exports such as China which will target other markets for export of steel and aluminum. While the US will seek new access to the export of fruits and soybeans.

The government will take various steps to anticipate the impact. One of them is a bilateral approach to both countries. In addition, the government is also trying to find new markets for non-traditional export destinations.

“As well as [the government will do] the utilization of trade remedies to anticipate the possibility of a surge in imported goods from China are hampered in the US market,” he explained.

To note, US and Chinese trade generated a deficit for the US of about 395.8 billion dollars in 2017. China’s exports account for about 21 percent of the US import market or reach US $ 526.2 billion. As for China, exports to the US account for 18% of total exports.

The US has announced the imposition of import duty tariffs on steel imports by 25% and for aluminum imports by 10%. This US policy will disrupt China’s exports to the US, given China is the main supplier for both products with a value of US $ 4.2 billion.

Under the US policy, China prepared a counterattack to respond to US policy and will take retaliation measures against 128 imported commodities from the US.