Market Reaction to the Announcement Tariff and Import Policy: An Event Study Analysis

Paulina Yuritha Amtiran

doi:10.55927/jfbd.v4i4.441

Authors

Paulina Yuritha Amtiran Universitas Nusa Cendana

DOI:

https://doi.org/10.55927/jfbd.v4i4.441

Keywords:

Abnormal Return, Event Study, Markets, Policy, Tarif

Abstract

The purpose of this study is to empirically measure and analyze the Indonesian capital market's reaction to President Trump's announcement of import tariffs. The analysis focuses on changes in average stock prices and trading volume during the period from March 7 to March 14, 2025. This research is a quantitative event study focused on financial markets. The event study method is an empirical research approach used to test market efficiency and to measure how quickly and accurately the Indonesian capital market absorbs and reflects new information from a specific event, such as an import tariff policy, on stock prices or security returns. Statistical analysis results indicate that the market did not react significantly on the day of the policy announcement.

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