Indonesia’s tariff deal with Washington risks unraveling its hard‑won nickel industrial policy. The agreement lifts U.S. levies but pressures Jakarta to relax export restrictions without securing binding processing or technology commitments. With China dominating refining and EV markets shifting away from nickel, the deal could weaken Indonesia’s leverage unless renegotiated.
Global trade is being squeezed between U.S. tariff volatility and China’s projection of stability. Trump’s rapid tariff shifts froze the EU’s Turnberry deal and rattled partners from India to ASEAN. Meanwhile, China’s record surplus masks weak domestic demand. For third countries, the real choice is between American policy whiplash and Chinese dependency.
The new “America First” arms‑transfer strategy is not a bureaucratic tweak. It is a fundamental reordering of how Washington decides who gets weapons, when, and why. By ranking partners based on defense spending, geographic utility, and economic benefit to the U.S., the administration has replaced alliance‑building with transactional filtering.
The recent Trump-Xi summit at the APEC gathering in Busan has raised critical questions regarding regional security architecture, particularly with Washington’s announcement of a “G2” framework with Beijing, which may reshape the Indo-Pacific strategic landscape beyond bilateral trade negotiations.
