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Trump's Import Tariffs Pressure the Rupiah and Disrupt Exports!
Bisnis | Ekonomi - Posted on 11 February 2025 Reading time 5 minutes
In the early stages of his administration, President Donald Trump imposed a 25 percent import tariff on trade products from Canada and Mexico, while products from China were subjected to a 10 percent tariff.
According to the Chairman of the Indonesian Employers Association (Apindo), Shinta Widjaja Kamdani, the trade tariff policy implemented by the President of the United States is expected to further pressure the exchange rate of the rupiah.
With the weakening rupiah and a disrupted trade balance, domestic inflation is predicted to rise. Coupled with extreme weather conditions that could disrupt agricultural production, food prices in Indonesia are also expected to surge.
In addition, another factor contributing to the negative sentiment towards the rupiah exchange rate is the projection of inflation data released by the Central Statistics Agency (BPS), which is expected to show still low inflation figures.
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