Trump Reignites Trade War, Sri Mulyani: This is an Economic War Game

U.S. President Donald Trump has reignited a trade war by imposing high import tariffs on several countries. Indonesian Finance Minister Sri Mulyani Indrawati described this policy as a "war game" initiated by Trump.

According to her, Trump is targeting countries with a trade surplus against the U.S., a list that includes at least 20 nations. Alongside China and Vietnam, Indonesia is also affected by these tariffs.

Since Trump’s return to office, Sri Mulyani observed that global economic policies have shifted from multilateralism to unilateralism. This shift is evident in the U.S.'s unilateral imposition of import tariffs on multiple countries.

"This is what we call a war game in the economic sector. Trade, which was once rule-based, can now be unilaterally altered, and President Trump is specifically targeting countries with a surplus against the U.S.," Sri Mulyani stated during the APBN KiTA press conference in Jakarta on Thursday (March 13, 2025).

For instance, Trump has imposed a 10% import tariff on energy products and 25% on other goods from Canada, while Mexico faces a 25% tariff and China 10%. These measures have triggered retaliatory tariffs from the affected countries.

Impact on Indonesia: Supply Chain Disruptions and Commodity Volatility

Sri Mulyani outlined several potential consequences for Indonesia due to Trump's trade policies, including:

• Higher supply chain costs, particularly in the manufacturing and digital sectors.
• Disruptions in global supply chains.
• Increased volatility in commodity prices.
• Market sentiment instability due to unpredictable trade policies.

"Commodity prices are fluctuating, market sentiment is swinging wildly, and this forces every nation to rethink the global economic landscape," she explained.

Globally, Trump’s trade actions could also trigger supply chain relocations and reconfigurations. In response, economic blocs outside the U.S., such as ASEAN and BRICS, are expected to strengthen.

"President Prabowo has consistently reminded us to prepare and fortify ourselves, as the world is no longer operating under the usual conditions. Unilateralism is becoming more dominant, and we must safeguard Indonesia’s interests and sovereignty," Sri Mulyani added.

No More "Friends" in Global Trade

Sri Mulyani emphasized that this trade war demonstrates how international trade relations are no longer based on friendship. She pointed to the example of the U.S. and Canada, once close allies, now facing trade tensions due to tariffs.

"This situation is making every nation rethink the global economic map. Even the concept of friendshoring no longer applies—because in today’s trade environment, there are no true friends anymore," she said.

"Just look at how close Canada and the U.S. once were. It used to be said that if you were friends, you were safe. But now, the definition of 'friend' in global trade has completely changed," she concluded.