automotive

Automotive Components Industry Proposes Government Retaliation Against US Tariffs

The Association of Automotive and Motorcycle Equipment Industries (GIAMM) has proposed that the government implement retaliatory or reciprocal tariffs on the United States as a short-term solution for fairer trade. 

Secretary General of GIAMM Rachmat Basuki said that his party was concerned about the impact of the US tariff policy on the national automotive component industry. 

GIAMM assessed that there needs to be a strategic step by the government in responding to this situation, considering that national automotive component exports to the United States currently rank second largest after Japan. 

"If they impose high tariffs, we also need to adjust. Tariffs are reciprocated with tariffs. But don't forget other options such as lowering tariffs for US products to create balance," said Rachmat in Jakarta, Sunday (6/4/2025). 

"This certainly has a big impact on our industry, because previously the import tariffs to the US were relatively small. Meanwhile, American products entering Indonesia were subject to much higher tariffs," said Basuki. 

In addition, his party highlighted the potential for a flood of automotive component products from China to the Indonesian market due to US trade policies towards that country. 

As a solution, in addition to imposing tariff barrier adjustments, GIAMM encourages the implementation of non-tariff barriers such as the Domestic Component Level (TKDN) policy and the Indonesian National Standard (SNI) to protect the national industry from the onslaught of imported goods that are not competitive in terms of quality and price. 

He invited the government to continue to strengthen trade diplomacy with partner countries and ensure that the national industry receives adequate protection, so that it continues to grow and contribute to the economy. 

"Despite the challenges, we remain optimistic. The American market is still open. As long as the tariffs imposed on China are not lower than ours, domestic producers still have the opportunity to compete," he said. 

Tag: Automotive GIAMM Rachmat Basuki