The trade war between the United States and other countries, especially China, has created great uncertainty in the global economy. Electronics entrepreneurs around the world, including Indonesia, have begun to express their concerns about the negative impacts caused by tariff policies and trade restrictions imposed by the US government. In this article, we will discuss how this trade war is affecting the electronics industry, what are the main concerns of entrepreneurs, and steps that can be taken to address these challenges.
Trade Wars and Tariff Policies
The US trade war began with the imposition of high tariffs on a variety of imported products, including electronics, textiles, and other raw materials. These tariffs were intended to protect US domestic industries, but their impact extended to other countries that are trading partners. China, as one of the largest exporters of electronic products, was the main target of this policy. As a result, the price of electronic products increased sharply, and the global supply chain was disrupted.
According to the latest report, tariffs imposed on electronic products have reached up to 49%, causing a spike in production costs and selling prices. This affects not only large companies but also small and medium-sized businesses that rely on imported raw materials.
Electronic Entrepreneurs' Concerns
In Indonesia, the Electronic Entrepreneurs Association (Gabel) has voiced their concerns about the impact of the trade war. Gabel Secretary General Daniel Suhardiman stated that the US tariff policy could threaten the domestic industry. One of the main problems is the entry of imported products with cheap prices and low quality, which could harm local producers.
Daniel also highlighted the importance of government regulation to protect the domestic market from the onslaught of imported products. He suggested that import controls be implemented at specific ports and entry points, as implemented in other countries such as India and Thailand.
In addition, local entrepreneurs are also concerned that their products will have difficulty competing in the international market, especially in the United States, due to high tariffs imposed on export products. This can reduce the competitiveness of Indonesian products in the global market.
Impact on the Electronics Industry
The electronics industry is one of the sectors most affected by the trade war. Products such as game consoles, smartphones, and other hardware have seen significant price increases. Big companies like Sony and Nintendo have even been forced to raise the prices of their products to cover the additional costs caused by the tariffs.
In addition, the trade war also affects innovation and investment in the electronics industry. Many companies are delaying the launch of new products or reducing research and development budgets. This can hamper technological progress and the competitiveness of the electronics industry in the global market.
On the other hand, consumers also feel the impact. Higher prices of electronic products make many consumers delay purchases or look for cheaper alternatives. This can affect market demand and reduce company revenues.
Steps to Face Challenges
To deal with the impact of the trade war, e-businesses need to take strategic steps. Here are some steps that can be taken:
- Supply Chain Diversification : Reducing dependence on imported raw materials from certain countries by seeking alternatives from other countries or utilizing local resources.
- Operational Efficiency : Improving production efficiency to reduce costs and maintain competitiveness.
- Collaboration with Government : Working with the government to develop policies that support domestic industry, such as tax incentives and market protection.
- Product Innovation : Developing more innovative and value-added products to attract consumers even as prices increase.
- Improving the Quality of Local Products : By improving the quality of local products, entrepreneurs can compete with imported products and attract the interest of domestic consumers.
The Role of Government in Addressing the Impact
The government has an important role in overcoming the impact of this trade war. One step that can be taken is to strengthen import regulations to protect domestic industries. In addition, the government can also provide incentives to local entrepreneurs to increase their competitiveness in the global market.
The government also needs to work with other countries to find diplomatic solutions that can reduce trade tensions. By creating a more stable trading environment, entrepreneurs can focus more on developing their businesses without having to worry about market uncertainty.
Conclusion
The US trade war has created major challenges for the electronics industry worldwide. Electronics entrepreneurs must prepare for the negative impacts of tariffs and trade restrictions. By taking strategic steps and working with governments, they can reduce their risks and remain competitive in the global market. Do you have any insights or experiences regarding the impacts of the trade war? I’d love to discuss it further!
