Can't find what you're looking for?
View all search resultsCan't find what you're looking for?
View all search resultsRather than raising high tariff walls, we believe strongly that the US and Indonesia are natural economic partners that should be deepening all aspects of our trade relationship.
nited States President Donald Trump recently sent a letter to President Prabowo Subianto, announcing the resumption of a 32 percent tariff for Indonesian imports starting Aug. 1 unless a trade deal is reached.
The 32 percent “Liberation Day” tariffs on Indonesia are deeply unfair, calculated only from the trade deficit itself rather than any sense of whether US exporters really face barriers in Indonesia.
Rather than raising high tariff walls, we believe strongly that the US and Indonesia are natural economic partners that should be deepening all aspects of our trade relationship. While the US had a US$17.9 billion trade deficit in goods with Indonesia in 2024, rising slightly by 5.4 percent from 2023, US exports to Indonesia also rose 3.7 percent last year.
Because the rates of tariff are calculated only on a measure that “would drive [US] bilateral trade deficits to zero,” this leads to some odd results.
For instance, Japan may now be subject to a 25 percent tariff, even though Japan has a significant trade surplus with the US, far larger than Indonesia’s. Japan's exports to the US in 2024 reached $148.2 billion, with the US goods trade deficit with Japan at $ 68.5 billion, according to the United States Trade Representative. Yet the tariff rate on Indonesia is higher.
Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.
Thank you for sharing your thoughts. We appreciate your feedback.
Quickly share this news with your network—keep everyone informed with just a single click!
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Get the best experience—faster access, exclusive features, and a seamless way to stay updated.