“We have anticipated these changes ever since Trump took office, and we are now refining our mitigation strategies,” Budi said, adding that the government is exploring the potential of the Indonesia-Canada Comprehensive Economic Partnership Agreement (ICA-CEPA) to facilitate trade with North America.

Furthermore, the ICA-CEPA is seen as a crucial agreement that could open up more opportunities for Indonesian products to enter the North American market, including the U.S. “This agreement provides important access to the U.S. market and neighboring regions,” said Budi.

He emphasized that this approach would allow Indonesia to continue strengthening its export relationships despite the broader trade challenges.

The tariffs imposed by the U.S. under President Trump have been part of a broader trend of protectionism, including additional import taxes on goods from Mexico, Canada, and China. The goal, according to Trump, is to curb illegal immigration and reduce drug trafficking. He acknowledged that these measures could cause some economic hardship but maintained that they are necessary for long-term national security and economic stability.

In response, Canada and Mexico are preparing retaliatory measures against the 25% tariffs imposed by the U.S., which could significantly disrupt their economies. Similarly, China has signaled that it will challenge the U.S. tariffs at the World Trade Organization (WTO), also preparing countermeasures in retaliation. These moves underscore the increasing tensions in international trade and the potential risks of a global trade war.

As Indonesia navigates these changes, it is crucial that the government remains flexible and proactive. Minister Budi’s statements highlight Indonesia’s dedication to adapting to shifting global trade policies and ensuring that the country’s economic interests are protected amidst an increasingly complex international environment. The government’s emphasis on diversification and strategic partnerships signals a resilient approach to preserving and enhancing Indonesia’s trade relationships, particularly with the U.S., in the face of evolving global dynamics.(Uki Ruknuddin)

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