"Not only China but ASEAN countries, such as Vietnam and others, may also be the focus of this import tariff imposition," Sri Mulyani remarked during a working meeting with Commission XI of the Indonesian House of Representatives in Jakarta, Wednesday.
Concerns about high import tariffs have arisen following Trump's policies during his first term as US president during the 2017-2021 period.
Trump is known for his protectionist policies that safeguard US domestic industries from foreign competition. As a result, imports from countries with trade surpluses are subject to high tariffs.
"Just like during President Trump's first term, the policy will likely impact all trading partners with surpluses," Sri Mulyani warned.
Meanwhile, fiscal policy under Trump's second presidency is expected to be quite expansionary. The 10-year US Treasury yield has increased, reflecting expectations that the US state budget may remain expansionary.
The US dollar also strengthened, driven by Trump's various new policies, especially corporate tax cuts, spending expansion for strategic sectors, and import tariff policies.
Regarding climate change policy, Trump is expected to be less aggressive than Joe Biden and the Democratic Party.
It will have an impact on global commitments to climate change, such as increasing fossil fuel production and oil prices, as well as the development of electric vehicles and their entire supply chain.
Sri Mulyani had also expressed such concerns during a press conference last week.
She explained that US policies under the Trump administration in the earlier period tended to be less supportive of reducing carbon emissions in the energy sector, which is an important concern in the issue of climate change.
Trump has proposed increasing domestic oil production to lower international oil prices. This condition is feared to have the potential to have a significant impact on world oil prices.
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Translator: Imamatul Silfia, Yashinta Difa
Editor: Azis Kurmala
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