AS Officially Implement 32 Percent Import Duty for Indonesia, Effective August 1, 2025

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AS Officially Implement 32 Percent Import Duty for Indonesia, Effective August 1, 2025

Gambar terkait AS Resmi Terapkan Tarif Bea Masuk Sebesar 32 Persen untuk Indonesia,Berlaku Mulai 1 Agustus 2025 (dari Bing)

Best for you, JAKARTA - The US government officially implemented reciprocal (mutual) tariffs on Indonesia amounting to 32 percent, effective from August 1, 2025.

The certainty of implementing reciprocal trade tariffs was directly announced by US President Donald Trump through a post on his Truth Social social media platform.

The number is not different from the previous announcement made by Donald Trump.

Reciprocal tariff is a policy taken by Donald Trump to impose tariffs on countries considered to have high trade barriers against the US, including Indonesia.

Donald Trump himself has already sent a letter notifying the implementation of this reciprocal tariff directly to President Prabowo.

"Starting August 1, 2025, we will implement a 32 percent tariff on all Indonesian products sent to the United States, separate from all sectoral tariffs," wrote the letter, as quoted from Tribunnews.com, Tuesday (8/7/2025).

In the letter, Trump also issued a threat of imposing higher tariffs on goods shipped through third countries.

According to Trump, the 32 percent reciprocal tariffs for Indonesia are still considered low compared to what is actually needed to eliminate the trade deficit imbalance that the US experiences with Indonesia.

Donald Trump claimed there would be no tariffs if Indonesia or companies from Indonesia decided to build or produce products in the United States.

"Indeed, we will do everything possible to speed up the licensing process professionally and routinely - in other words, within a matter of weeks," wrote Donald Trump in the letter.

Donald Trump emphasized that if Indonesia decides to increase tariffs, whatever the increase is, it will be added to the 32 percent tariff that the US imposes.

She asked to be understood that these rates are in place to correct the tariff and non-tariff policies and trade barriers from Indonesia over the years.

Donald Trump claimed that Indonesia's tariff policies have caused an unsustainable trade deficit against the United States.

"Esta defisit é uma grande ameaça à nossa economia e até mesmo à nossa Segurança Nacional!", escreveu Donald Trump.

Items subject to a 32 percent import duty

Still quoted from Tribunnews.com, Executive Director of the Center of Economic and Law Studies (Celios) Bhima Yudhistira said that Trump's tariff policy will affect several goods in Indonesia, especially export products.

Among them are electronic components, machines, palm oil, footwear, ready-made clothes, palm oil (SPO), vehicle parts, rubber, and fishery products.

Bhima explained that the automotive sector will also be affected by Trump's tariff policy. He said that the automotive sector experienced growth with an average of 11 percent between 2019 and 2023.

With the Trump tariff policy, automotive export growth could become negative.

"First, American consumers bear the tariffs with higher vehicle purchase prices, (thus) motor vehicle sales decline in the US," said Bhima on Friday (4/4/2025), quoted from Kompas.com.

The next impact is the probability of an economic recession in the US increasing due to weak demand.

This is correlated with the economy in Indonesia. Indeed, every 1 percent decline in economic growth in the US leads to a 0.08 percent decline in Indonesia's economy.

Other impacts will be felt by Indonesian automotive manufacturers who are not easily able to shift to the domestic market because the specifications of vehicles being exported are different.

"Indeed, layoffs and reduced production capacity in all domestic automotive industries," said Bhima.

Not only automotive products, other items such as electronic components will also be affected by Trump's tariff policy.

"This is because of the relationship between electronic manufacturers and automotive parts," said Bhima.

He also explained that electronic components are a high-value export product of Indonesia to the US.

The next exported goods product affected by Trump's tariff policy is labor-intensive products, such as ready-made clothing and textiles.

"Ready-made clothes and textiles are expected to continue to decline," said Bhima. He said that most international brands present in Indonesia have a large market in the US.

Therefore, when these export products are affected by Trump's tariff policy, they will decrease according to the number of orders or purchases to Indonesian factories.

Meanwhile, domestically, ready-made clothing and textile products are flooded by exports from Vietnam, Cambodia, and China.

Meanwhile, Permata Bank's Chief Economist Josua Pardede said that Trump's tariff policy will also affect Indonesia's export products, including chemicals, cosmetics, and medicines.

"This policy specifically hits products that have been competing fiercely with U.S. local production, such as electronics, machinery, chemicals, cosmetics, medicines, iron, steel, and a large number of agricultural products," he said, reported by Kompas.com, Thursday.

According to him, this high import tariff increase will sharply raise export costs for Indonesian producers and exporters. This affects the competitiveness of Indonesian products in the US market. (*)



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