Indonesia Faces 32% Tariff, Higher Than Malaysia Up to Vietnam

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Indonesia Faces 32% Tariff, Higher Than Malaysia Up to Vietnam

Best for you JAKARTA - President United States (AS) Donald Trump Formally set new import tariffs against 14 countries, including Indonesia.

From the Southeast Asian region, Indonesia is recorded as one of the countries with the highest tariffs, namely 32%, higher than Malaysia (25%) and Vietnam (20%).

The new tariff policy was announced directly by Trump through his TruthSocial account on Tuesday (8/7/2025). The tariffs will take effect on August 1, 2025.

In his official letter, Trump stated that this policy aims to create fair and balanced trade for the United States.

"Nevertheless, we have decided to move forward with you, but only with more balanced and fair trade," wrote Trump in his statement.

Compared to other ASEAN members, Indonesia's tariffs are relatively high. The tariffs applied to Indonesia are higher than the 25% tariff for Malaysia and the 20% tariff for Vietnam.

Myanmar and Laos are subject to higher tariffs than Indonesia, each at 40%. Meanwhile, the tariffs for Thailand and Cambodia are each 36%.

Most countries experienced a slight reduction in tariffs compared to the duties announced at the beginning of April. Specifically, Laos import tariffs decreased from 48% to 40%; Myanmar from 44% to 40%; Cambodia from 49% to 40%;

Meanwhile, import tariffs for Vietnam were sharply reduced from 46% to 20% after reaching a trade agreement with the US. On the other hand, tariffs for Malaysia increased from previously 24%.

Unlike Vietnam and the UK, which have successfully reached a trade agreement with the US, Indonesia has not shown similar progress. This also affects the US policy on tariffs against Indonesian products.

Trump reminded that these tariffs could increase if those countries impose additional tariffs on goods from the US.

"AS will add the above-mentioned increase to the basic rate of 25%," he emphasized.

Meanwhile, Trump emphasized that the implementation of these tariffs aims to improve fair trade relations between trading partner countries with United States .

He explained that the letter sent by the US still reflects the strength and commitment of the US trade relationship with these countries.

AS also agrees to continue cooperating with trading partners, despite having a significant trade deficit with various countries.

"Nevertheless, we have decided to move forward with you, but only with more balanced and fair trade," he explained.

Trump invited various countries to continue participating in the US economy, as the main market of the world today. Nevertheless, it cannot be denied that after years of discussing the US-Indonesia trade relations, it is considered unfair because it has caused a deep deficit.

Additional Duty Threat

Amid this global tariff escalation, Trump also shifted the focus to developing countries members of BRICS holding a summit in Brazil.

Trump threatened to impose an additional 10% tariff on BRICS countries deemed to be implementing "anti-American" policies.

"A 10% additional tariff will be applied individually to countries that take policy measures contrary to American interests," said a source familiar with the policy.

The BRICS group consists of Brazil, Russia, India, China, and South Africa, as well as new members such as Indonesia, Egypt, Ethiopia, Iran, and the United Arab Emirates.

Still Being Efforted

Deputy Secretary of State (Wamensesneg) Bambang Eko Suhariyanto stated that the government is still reviewing the decision by Trump to continue applying a 32% tariff on products imported from Indonesia.

Bambang said the government has also not yet taken a decision in responding to the President's decision, as the negotiation team led by Economic Coordinating Minister Airlangga Hartarto is currently on its way to the United States.

"We hope our demands will be fulfilled. Below 32%, that's all the team is still working for," he told reporters when met at the Senayan Parliamentary Complex in Jakarta, Tuesday (7/8/2025).

When asked about what caused the negotiation between the Indonesian government and the US, Bambang admitted that those most knowledgeable about it are the negotiation team led by Coordinating Minister Airlangga.

"Up to now, [those who know] are his team, Mr. Airlangga Hartarto," said the former TNI AU officer.



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