Indonesia May Feel the Impact of US 100% Tariffs on China, Economist Says

Wijayanto said the move could lead to an influx of Chinese products into Indonesia, as exporters seek alternative markets to offset declining access to the US.

“The government must anticipate this possibility,” he told reporters on Tuesday, October 14, 2025.

However, Wijayanto noted that the policy could also open opportunities for Indonesia, as Chinese goods face higher barriers in the US. “On the other hand, this situation provides room for Indonesia to expand its exports to the United States,” he said.

From an investment perspective, Wijayanto warned that global market volatility could intensify. “Foreign investors will likely adopt a ‘wait-and-see’ stance.

Stock prices may stagnate or decline, digital assets could come under pressure, and gold prices are expected to rise,” he explained.

Tensions between Washington and Beijing had briefly eased after a May 2025 agreement to lower reciprocal tariffs, as both countries sought to end the trade war that had rattled global markets. But the latest escalation signals a renewed strain in economic relations between the world’s two largest economies.

Since returning to office in January, President Trump has raised tariffs on Chinese imports to 145 percent, on top of those previously imposed during his first term and by the Biden administration.

The renewed tariff war has disrupted nearly US$600 billion in two-way trade, straining supply chains, fueling fears of economic stagnation, and triggering layoffs across several industries.