Judul : Apindo Worries Over Trump's Threat to Add 10% Tariffs to BRICS Countries
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Apindo Worries Over Trump's Threat to Add 10% Tariffs to BRICS Countries
Best for you , JAKARTA — Indonesian Business Association ( Apindo ) evaluating the US President's plan Donald Trump applying an additional 10% tariff to countries BRICS , including Indonesia, must be anticipated properly.
President of Apindo, Shinta W. Kamdani, said that this situation is called a geopolitical negotiation signal that must be mitigated and its risks considered immediately.
"Indonesia's joining BRICS is essentially a strategic move to expand the Global South network, access alternative funding, and diversify export markets," Shinta told Bisnis on Tuesday (7/8/2025).
Nevertheless, Shinta is wary of the US protective tariffs against BRICS countries, which Trump called anti-American. This shows that the dynamics of global trade are increasingly filled with political bargaining.
She said that negotiations with the US side, especially during President Trump's era, need to be carried out with high vigilance because policy decisions can change at any time along with the domestic political interests of the US.
"As a strategic government partner, Apindo has been actively monitoring the negotiation process of reciprocal tariff policies with the United States since the beginning, which now enters an important deadline on July 9, 2025," he explained.
In the last 90 days, they have provided written and direct input in various official forums, and the Government has submitted a second offer for Indonesia, which has now been accepted by USTR.
To respond to this new threat, entrepreneurs uphold the principle that Indonesia's bargaining position must remain strong. According to Shinta, Indonesia cannot be simply equated with other BRICS countries, as their commodity profiles and industrial structures differ.
She emphasized that in facing this potential policy, Apindo has prepared a number of concrete steps, which have also been submitted to support the negotiation of the reciprocal tariff policy from the US, which is also relevant to anticipate an additional 10% tariff.
First, promoting efforts to reduce the US trade deficit by opening up space for increased imports of strategic commodities such as cotton, soybeans, dairy products "from corn to crude oil, a win-win scenario to ensure domestic industrial needs are still guaranteed while addressing U.S. concerns," he explained.
The second step is for entrepreneurs to expand penetration into non-traditional markets, strengthen the competitiveness of the supply chain, and improve production efficiency.
Thirdly, the party emphasized the importance of reducing non-tariff barriers and strengthening trade remedies mechanisms to protect the domestic market from potential influx of cheap goods due to trade diversion among BRICS members.
"if the 10% additional tariff is indeed implemented on top of the reciprocal tariff policy, the impact will further pressure labor-intensive industries such as TPT, furniture, footwear, and toys, whose exports to the US are still significant," he explained.
Although, the export decline trend and the performance of the manufacturing industry have already been visible from the recent weakening of the PMI. The last Indonesia manufacturing PMI in June 2025 was recorded at 46.9.
Shinta explained that although Indonesia's export dependence on the US is only about 10% of total exports, with relatively low contribution of exports to GDP (21%), the risk of declining global demand, influx of cheap/illegal goods, and high operating costs remain real challenges that must be anticipated together.
However, he sees that there are still opportunities with Indonesia's status as a BRICS member. This means Indonesia has greater access to the New Development Bank, alternative financing routes, and the increasingly integrated intra-BRICS market.
The key is, Indonesian entrepreneurs must focus on competitive advantage , strengthen value chain , and maintain sustainability dan resilience ," he said.
Previously reported, U.S. President Donald Trump stated that he would impose an additional 10% tariff on any country considered to align with the anti-American policies promoted by BRICS.
The threat adds to the uncertainty amid ongoing trade negotiations with several U.S. trading partners.
"Any country that supports BRICS' anti-American policy will be subject to an additional 10% tariff. There will be no exceptions to this policy," Trump wrote in his post on the Truth Social platform, as quoted by Bloomberg on Monday (7/7/2025).
Previously, Trump had also threatened to impose tariffs as high as 100% on BRICS if member countries abandoned the use of the US dollar in bilateral trade.
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