The Tariff Offensive: A Shift in Global Trade Dynamics

The global trade system has been shaken by aggressive tariffs initiated on April 2 by former United States President Donald Trump. This move, based on what has been termed the Grievance Doctrine, aimed to retaliate against nations perceived as treating the U.S. middle class unfairly, has introduced meaningful uncertainty and instability into international commerce.

Critics argue that this approach lacks sound economic justification and threatens the multilateral trade system that has been crucial for global prosperity since World War II. This doctrine signals a move toward protectionism, prioritizing retribution over strategic economic planning.

Reshaping trade Relations: A Post-American World Order

The imposition of these tariffs has led to significant disruptions in the global trade landscape. Countries are now navigating the fallout and actively rearranging trade relationships in what some analysts are calling a post-American world trade order. These actions reveal new political and economic pressures that are reshaping global trade dynamics.

Risks and Repercussions: Undermining Long-Term Stability

The tariff-driven approach risks undermining long-term investments, disrupting established supply chains, and straining relationships with key trading partners. The erratic decision-making and perceived lack of a coherent strategy have steered the U.S. away from a rules-based global trade system and toward protectionism, with worldwide repercussions.

Indonesia’s Critical Juncture: Adapting to New Pressures

Indonesia finds itself at a critical juncture, adapting to a post-american world trade order filled with new political and economic pressures.The U.S. Trade Representatives (USTR) Report 2025 highlights areas where Indonesia needs advancement, including tariffs, non-tariff barriers, technical barriers, and intellectual property protection.

The US-China Trade war: A Delicate Balancing Act

The ongoing U.S.-china trade war adds another layer of complexity to Indonesia’s trade strategies.The conflict, which began with tariffs on steel and aluminum in March 2018, has seen periods of escalation and negotiation.Despite a Phase One Deal aimed at reducing tariffs and boosting U.S.exports to China, disagreements over compliance have reignited friction.

Indonesia faces a delicate balancing act amid threats of reciprocal tariffs and sovereignty concerns. The initial tariffs imposed by the U.S. on steel and aluminum triggered retaliatory actions from China, leading to escalating tensions and subsequent negotiations.

Despite signing a Phase One Deal aimed at reducing tariffs and boosting US exports to China, disagreements over compliance have reignited friction, leaving Indonesia in a delicate balancing act amid threats of reciprocal tariffs and sovereignty concerns.