REPUBLIKA.CO.ID, JAKARTA -- Finance Minister Sri Mulyani Indrawati reminded that the imposition of tariffs on steel and aluminum imports by the United States can trigger a trade war. She explained the world history recorded that a trade war has a bad impact on the world economy.

Sri Mulyani said the whole world is waiting for certainty of the plan to impose import tariffs. The move has the potential to make countries that have trade relations to retaliate with each other on imposing the tariffs.

"We'll see first, the dynamics of the policy is being debated between President Trump, the congress and the senate," she said.

Earlier, US President Donald Trump assured he will impose steel import tariffs by 25 percent and aluminum by 10 percent to protect the domestic industry.

But experts say the move could harm US producers and potentially face legal challenges from trading partners.

In response to the US plan, the EU will propose a few steps in the coming days.

Meanwhile, the European steelmaker association, Eurofer, said that the 25 percent tariff plan for steel imports meant the US had chosen a path of trade confrontation.

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