Trump Keeps 32% Tariff in Place as Indonesia Continues Negotiations
Jakarta, Indonesianpost.com – Reported by Antara, The governments of Indonesia and the United States are continuing negotiations following the recent announcement of a 32-percent tariff on Indonesian products, according to Deputy Minister of Trade Dyah Roro Esti Widya Putri.
She explained that a team from the Coordinating Ministry for Economic Affairs is currently in the United States lobbying President Donald Trump to reduce the tariff, which was announced through an official letter.
“The negotiation process is still ongoing. We are actively working on this issue,” Putri said after opening the South-South and Triangular Cooperation (SSTC) on Trade and Investment Promotion for African Countries 2025 event in Jakarta on Tuesday.
Putri also mentioned that Coordinating Minister for Economic Affairs Airlangga Hartarto is scheduled to travel to the US after accompanying President Prabowo Subianto to the 2025 BRICS Summit in Rio de Janeiro, Brazil.
The deputy minister emphasized that President Prabowo has directed his aides to continue working on expanding Indonesia’s global market access through international trade agreements.
In this context, she highlighted that Indonesia has already signed trade deals with Canada and Tunisia, as well as a comprehensive economic partnership agreement with Peru.
“These agreements are part of our efforts to expand access for our products internationally,” she added.
Putri reiterated that the 32-percent tariff is not final, as discussions between Jakarta and Washington are still in progress.
“I want to emphasize again that talks are still ongoing,” she said.
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Despite ongoing bilateral discussions, US President Donald Trump has moved forward with the decision to impose a 32-percent tariff on Indonesian products entering the United States. This policy was first announced on April 2.
“Starting August 1, 2025, we will charge a 32-percent tariff on any and all Indonesian products sent into the United States, separate from all sectoral tariffs,” Trump wrote in a letter to President Prabowo, which was signed on July 7.
In the letter, posted on Truth Social, Trump stated that the tariff was necessary to address the US trade deficit with Indonesia, which he attributed to tariff and non-tariff barriers.
“Please understand that the 32 percent number is far less than what is needed to eliminate the trade deficit disparity we have with your country,” he wrote.
Trump also warned Indonesia against raising tariffs on US products in retaliation, saying, “Whatever the number you choose to raise them by will be added onto the 32 percent that we charge.”
However, he offered an exemption from the tariff if Indonesia chooses to manufacture products within the United States and promised full government support for such efforts.
“These tariffs may be modified, upward or downward, depending on our relationship with your country,” Trump told President Prabowo. (BL)