Inggrid Brigita Vinsensa Hutapea

Case analysis of Donald Trump's 2025 tax rate hike on cooperation with Indonesia and its impact on the global economy

Introduction

Case analysis of donald trump's 2025 tax rate hike on cooperation with indonesia and its impact on the global economy. Examines Trump's 2025 tax hike impact on Indonesia's MSMEs & global economy. Analyzes Indonesia's political communication & economic diplomacy for cooperation amid protectionism.

Abstract

Background: The phenomenon of Donald Trump raising tariffs on several trading partner countries is causing conflicting political and economic situations internationally. This has put several developing countries under pressure, including Indonesia itself. The focus of this research is to understand how Indonesian Micro, Small, and Medium Enterprises (MSMEs) maintain their price competitiveness amid these tariff policy changes, as well as to analyse the political communication strategies implemented by Indonesia in addressing these challenges on the international stage. Methods: This research uses a qualitative method based on literature review, as well as analysis techniques that use literature review and discourse analysis of official statements, policies, and public responses. Findings: The results of the analysis lead to the conclusion that this research focuses on key political communication strategies that not only involve negotiations at the government level but also build positive narratives in the international public sphere to attract sympathy and cooperation from other countries. The analysis shows that Indonesia, through its political communication strategy, seeks to strengthen the image of MSMEs in the global market, build new economic alliances, and expand its economic diplomacy network to reduce dependence on markets that impose high tariffs. Maintaining economic balance depends on cooperation that involves strategic and collaborative communication. Conclusions: Thus, this study concludes that in the era of new protectionism, the success of developing countries in maintaining their economic position depends heavily on their ability to conduct strong economic diplomacy, supported by effective and adaptive political communication strategies in response to global dynamics. This strategy not only involves negotiations at the government level but also building a positive narrative in the international public sphere to attract sympathy and cooperation from other countries. Novelty/Originality of this article: The novelty of this article lies in its analysis of political communication and economic diplomacy in understanding the impact of international tariff policies on developing countries, particularly in the context of global power imbalances.

Review

The submitted manuscript addresses a highly pertinent and timely subject concerning the implications of protectionist trade policies, specifically referencing former President Donald Trump's potential tariff adjustments in 2025, on developing economies like Indonesia. The paper aims to explore two critical areas: how Indonesian Micro, Small, and Medium Enterprises (MSMEs) can maintain price competitiveness amidst such changes, and the political communication strategies Indonesia employs on the international stage. Employing a qualitative methodology grounded in literature review and discourse analysis of official statements and public responses, the research seeks to offer insights into economic diplomacy in an era marked by global power imbalances. The interdisciplinary nature, blending economics, political science, and communication studies, is a commendable strength. The findings presented in the abstract highlight the central role of robust political communication strategies. These strategies extend beyond traditional government-level negotiations to include building positive narratives in the international public sphere, fostering sympathy, and securing cooperation. The analysis suggests Indonesia's efforts to strengthen the image of its MSMEs, forge new economic alliances, and diversify its economic diplomacy network are crucial steps to mitigate dependence on high-tariff markets. This emphasis on strategic and collaborative communication to maintain economic balance in the face of new protectionism is a valuable contribution, underscoring the dynamic interplay between national policy and international perception. The stated novelty, focusing on the intersection of political communication, economic diplomacy, and tariff impacts on developing nations, positions the study in a relevant academic niche. While the premise is strong, several aspects warrant further clarification and development. Firstly, there is a significant discrepancy between the title, which refers to a "2025 tax rate hike," and the abstract's consistent discussion of "tariffs." This needs immediate rectification for precision and accuracy. Secondly, given the focus on a prospective 2025 policy, the abstract does not sufficiently elaborate on the methodological approach for analyzing future scenarios or potential impacts, which is crucial for a forward-looking study. Thirdly, while MSME price competitiveness is stated as a primary focus, the findings lean heavily towards political communication strategies, with the direct link to *how* MSMEs specifically maintain competitiveness through these strategies remaining somewhat underexplored. Greater detail on the specific official statements and public responses analyzed, and the analytical framework used for the discourse analysis, would also strengthen the methodological rigor and clarity of the paper.

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