US Import Tariffs Could Flood Indonesia with Chinese Cars

KatadataOTO – United States President Donald Trump has set an import tariff rule for a number of countries, including Indonesia. The rate is 32 percent.

Although it does not yet export cars to Uncle Sam's country, Indonesia is one of the largest exporters of automotive components to the US.

Thus, the automotive component industry is one of the parties negatively affected by the implementation of Trump's reciprocal tariff.

In addition, observers believe there are still challenges facing the automotive industry in Indonesia, namely the flood of foreign products, especially environmentally friendly vehicles from China.

Photo : Carnewschina

There is a chance that other countries finding it difficult to export to the US will look for other alternative markets.

Southeast Asia is a potential destination, like Thailand and Indonesia. Both have a number of incentive policies that benefit both producers and consumers.

“The high US reciprocal tariff could clearly trigger a flood of foreign products, especially Chinese HEV, PHEV, and BEV cars, into Indonesia. Because their alternative markets are increasingly hampered,” said Yannes Martinus Pasaribu, an automotive observer and academic from ITB (Bandung Institute of Technology) to KatadataOTO, Wednesday (09/04).

In Indonesia itself, Chinese manufacturers are mushrooming. The number could still increase with the US import tariff.