JAKARTA – The governments of Indonesia and Australia are reinforcing bilateral trade relations in response to escalating trade tensions between the United States and China.

According to The Canberra Times on Monday (14/4), Indonesian Finance Minister Sri Mulyani and Australian Treasurer Jim Chalmers held a discussion on Saturday afternoon (12/4) regarding trade ties between the two countries.

The dialogue addressed the impact of the US government’s move to raise import tariffs on several trading partners, a decision with global implications, particularly for Asia and Australia.

“Our strategy in response to rising trade tensions is to build greater resilience, diversify markets, and enhance regional engagement. That has been the core of all our discussions,” said Chalmers.

Prior to discussions with the Indonesian government, Australia had conveyed similar messages to South Korea and the United Kingdom, even as the US temporarily paused the implementation of its tariff hike.

The US tariff increase policy, introduced by President Donald J. Trump last week (2/4), triggered retaliatory tariffs from China. In the span of a week, the US raised tariffs on Chinese goods multiple times to as high as 145%, prompting China to retaliate with increases up to 125%. This tit-for-tat escalation has fuelled concerns of a looming global recession that could impact the entire region. (LK)