Rupiah Depreciation After Trump's Import Tariff Stance

Author: Luthfie Febrianto
January 22, 2025

Ilustrasi uang rupiah. Photo : Pinterest

SEAToday.com, Jakarta - Following the inaugural speech of U.S. President Donald Trump, economic analyst, Ariston Tjendra, stated that the exchange rate of the rupiah is likely to weaken.

Trump confirmed a new policy to raise import tariffs on goods from trading partner countries, including Mexico and Canada, by 25 percent.

This policy is designed to increase national revenue, particularly related to issues of illegal immigration and the circulation of narcotics.

"The rupiah is likely to depreciate to a range of Rp16,400-Rp16,450, with support at Rp16,300," said Ariston, as quoted by ANTARA News.

This tariff increase could trigger retaliatory measures from the affected countries, potentially escalating international trade tensions.

While Trump’s policy, aimed at ending the war in Ukraine and improving relations with China, could have a positive impact on global markets, the risk of a trade war remains a significant concern

At the opening of today’s trading, the rupiah appreciated by 75 points, or approximately 0.46 percent, to Rp16,293 per U.S. dollar, correcting the previous decline which had reached Rp16,368.

As such, market players will continue to monitor the implementation of this tariff policy and its impact on the global economy.

Writer: Syifa Azzahra