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View all search resultsTrump's newly announced "world tariff" plan for rates between 15 and 20 percent has left the government in a state of agitated ambiguity, especially following the comprehensive concessions Indonesia has made to secure a 19 percent tariff via the recently agreed framework trade deal with the US.
ndonesia has raised concerns over the latest plan from United States President Donald Trump to impose tariffs between 15 and 20 percent on countries that have not yet reached a trade deal with Washington, in light of the significant offers it has made to secure a rate within that range in the recently agreed “trade framework”.
“We have made [an import commitment] of $19.5 billion [to get a 19 percent tariff]. How can other countries offer nothing but still get a flat 15 percent rate? That’s impossible,” Susiwijono Moegiarso, secretary to the Coordinating Economy Minister, said on Tuesday, as quoted by Bisnis.com.
He cited examples such as Japan’s pledge of US$550 billion in import commitments to secure a 15 percent tariff rate, and Europe’s $750 billion import commitment to obtain the same rate.
Susiwijono also pointed to ambiguities surrounding Trump’s new tariff plan.
“What exactly does 15 to 20 percent mean? There is no official document yet. It must be reflected in trade agreements, we can't rely solely on announcements made via social media,” he said.
He also said countries that had reached deals with Washington, including Indonesia, were not yet bound by any formal trade agreement.
Read also: Trump eyes 'world tariff' of 15-20% for most countries
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