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View all search resultsFor Indonesia, which is deeply embedded in East Asian production networks and heavily exposed to Chinese trade and investment, a reciprocal trade agreement with the US could trigger chaotic and costly supply chain realignments.
Trade Minister Budi Santoso says he is working to secure a bilateral trade agreement to exempt Indonesia from Mexico's planned tariffs. The move follows reports that Mexico intends to impose duties of up to 50 percent on imports from several Asian countries, including Indonesia, starting in 2026.
The two countries in July said Indonesia agreed to eliminate tariffs on more than 99 percent of US goods and scrap all non-tariff barriers facing American firms, while the US will drop threatened tariffs on Indonesian products to 19 percent from 32 percent.
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