MSME Strategies in Facing the Global Trade Tariff War

Authors

  • Dedy Sukmana Universitas Indonesia Maju, Indonesia

DOI:

https://doi.org/10.38035/dijdbm.v6i5.5543

Keywords:

MSMEs, Trade Tariff Wars, Protectionism, Adaptive Strategies, Competitiveness

Abstract

The global trade tariff war triggered by protectionist policies between countries has had a significant impact on the sustainability of micro, small, and medium enterprises (MSMEs). As a sector that contributes significantly to the Indonesian economy, MSMEs face challenges in the form of rising production costs due to import tariffs on raw materials, decreased competitiveness of export products, and global market uncertainty. This study uses qualitative methods with a literature review to analyze the impact of the global trade tariff war on MSMEs and formulate adaptive strategies that can be taken. The analysis results show that the main strategies that MSMEs can implement include market diversification, domestic market optimization, digitalization and utilization of e-commerce, product innovation based on local wisdom, increased production efficiency, and collaboration with the government and the private sector. By implementing these strategies, MSMEs are expected to be able to survive, be competitive, and continue to contribute as a main pillar of the national economy amidst global trade uncertainty

References

Sakinah, Z., Muzaffar, M., & Raihan, M. F. (2025). Indonesia’s Strategic Legal and Economic Response to the US–China Trade War: Implications for Global Value Chains, Foreign Investment and MSMES. Trunojoyo Law Review, 7(2), 287-313.

Tohir, M., Gunawan, A., Suryo, A. A., Pahrudin, C., & Sugiyanto, S. (2025). Socialization of MSME Marketing Innovation in Facing Trade Tariff Increases. ASPIRASI: Publikasi Hasil Pengabdian dan Kegiatan Masyarakat, 3(3), 09-21.

Zulelli, R., Rizani, F., Yusniar, M. W., & Fauzan, M. (2025). The Impact of International Trade Regulation on MSMEs and Global Trade: A Systematic Review of the Literature. Asian Journal of Management, Entrepreneurship and Social Science, 5(02), 560-580.

Aaron, R. A., & Firdausi, R. F. (2024). Impact of trade policies on the MSMEs' competitiveness in Indonesia: The case of e-commerce import restrictions (No. 24). Policy Brief.

Manhas, R., & Kumar, A. (2021). Government policies towards businesses during pandemic: Special reference to MSMEs. Abhigyan, 39(2), 1-9.

Luhuringbudi, T., Fatahillah, W., Muhtar, A., Masuwd, M. A., & Alrumayh, S. H. (2025). The Impact of the US-China Trade War on the Application of Islamic Law in Indonesia. Islamic Law and Social Issues in Society, 1(1), 1-23.

Kumar, N. (2024). Manufacturing-led transformation for realizing India’s 2047 Vision in the context of a fractured trading system: challenges, opportunities, and strategic interventions. Indian Economic Review, 59(Suppl 1), 155-176.

Cahyani, L. I., & Raharjo, S. T. (2023). Strategies of Micro, Small, and Medium Enterprises to be Able to Compete in the International Market. Return: Study of Management, Economic and Bussines, 2(4), 330-340.

Lin, J. Y., Yang, Z., Li, Y., & Zhang, Y. (2022). Development strategy and the MSMEs finance gap. Journal of Government and Economics, 5, 100034.

Mirzaye, S., & Mohiuddin, M. (2025). Digital Transformation in International Trade: Opportunities, Challenges, and Policy Implications. Journal of Risk and Financial Management, 18(8), 421.

Sakala, J. (2024). Innovative Financial Strategies For Resilient Msmes In Zambia Amid Economic Challenges. Available at SSRN 5028470.

Karim, M. F., Rahutomo, R., Manuaba, I. B. K., Purwandari, K., Mursitama, T. N., & Pardamean, B. (2023). Free trade as domestic, economic, and strategic issues: a big data analytics approach. Journal of big Data, 10(1), 44.

Downloads

Published

2025-09-16