Judul : Indonesian Negotiation Team Already in Washington, 14 Countries Face Trump Tariffs on August 1st
link : Indonesian Negotiation Team Already in Washington, 14 Countries Face Trump Tariffs on August 1st
Indonesian Negotiation Team Already in Washington, 14 Countries Face Trump Tariffs on August 1st
Best for you In April last year, American President Donald Trump temporarily postponed the implementation of a 32 percent reciprocal tariff against Indonesia. However, on Monday (7/7), the top leader of the United States directly wrote to President Prabowo Subianto, stating that starting August 1, they will implement this reciprocal tariff. Indonesia is not alone; there are 13 other countries with the same fate.
A letter with the White House logo was directly addressed to Prabowo, who had just attended the BRICS High-Level Conference in Brazil. The letter signed by Trump contains the desire of the United States to continue cooperating with Indonesia.
"We have had years to discuss our Trade Relationship with Indonesia, and have concluded that we must move away from the long-term, very persistent Trade Deficit caused by Indonesia's Tariff and Non-Tariff Policies, and Trade Barriers. Our relationship, unfortunately, is far from being reciprocal. Starting August 1, 2025, we will impose a 32 percent tariff on all Indonesian products sent to the United States, separate from all Sectoral Tariffs," the letter stated.
In addition, this tariff is not applicable if the tariff policy is required to correct Indonesia's tariff and non-tariff policies and trade barriers, which cause an unsustainable trade deficit against the United States. According to him, the deficit is a threat to the American economy and this measure is for its national security.
Similar letters were also sent to Japan, South Korea, Malaysia, Kazakhstan, South Africa, and Laos. In addition, there are Myanmar, Bosnia, Herzegovina, Tunisia, Bangladesh, Serbia, Cambodia, as well as Thailand. According to BBC, since April, the delay in implementing reciprocal tariffs should have been implemented, Wednesday (7/9).
In a letter given last Monday, Trump mentioned that the tariffs could be increased or even reduced. All of this depends on the relationship between these 14 countries and America. According to Vasu Menon, an investment expert at OCBC Bank, this statement shows Trump's openness to negotiate again.
"Hope that Trump is once again involved in negotiation tactics. Instead of making serious tariff threats, (Trump) gives hope to investors," said Menon.
What is Indonesia's response?
Hasan Nasbi, Head of the Presidential Communication Office, stated on Tuesday (7/8) that there is still an opportunity for discussion with America. "In the letter, President Trump also stated that there is still an opportunity to discuss this (tariff policy, Red) to be reduced," he said.
Indonesia is also trying to catch up. Hasan stated that the Indonesian negotiation team has already arrived in Washington.
"Minister of Coordinating Economic Affairs (Airlangga Hartarto) is on his way to Washington," he said. Hasan had called Airlangga while still in Brazil and heading to America.
He said that the government is quite optimistic about winning the negotiations. The reason is that Indonesia has maintained good relations with many countries, including America. This is the basis of the confidence that the result of the negotiations will meet expectations.
At the same time, Hasan responded to the statement by Finance Minister Sri Mulyani, who mentioned the decline in economic growth outlook from 5.2 percent to 4.7 percent, up to a maximum of 5 percent. According to Hasan, the impact of the global economic situation has forced the country to adjust its conditions.
Global economic growth is predicted to be only 2.3 percent. Therefore, the domestic prediction that is much higher than the global one is a positive thing.
"Perhaps only a few countries (which experience economic growth above the global average), maybe Vietnam and the Philippines, whose economic growth predictions are above ours," he said.
Seeing this reason, he mentioned there is domestic optimism. In six months, according to Hasan, there may be some relaxation. "Government spending, capital expenditure, goods spending, social assistance, may stimulate our economy in the next six months," he said. This includes if all targets of the Free Nutritious Meal (MBG) program have already received benefits, which would boost the domestic economy.
World Leaders' Reaction
Trump's reaction to the letter was also shown by various world leaders. From Japan, Prime Minister Shigeru Ishiba expressed regret over the tariff announcement. According to CNBC, he will continue negotiations with the US government.
Japan's exports to the U.S. will be subject to a 25 percent tariff starting August 1. Previously, the announcement was 24 percent. At a meeting with cabinet ministers regarding Japan's strategy on tariffs, Ishiba noted that the Trump administration has proposed a plan to continue negotiations until the end of August.
"Depending on Japan's response, the content of the letter can be revised," Ishiba said at a meeting held on Tuesday.
Meanwhile, South Korea will also conduct negotiations. South Korea is subject to a comprehensive tariff of 20 percent. South Korean Trade Minister Yeo Han-Koo asked the U.S. to lower tariffs on cars, steel, and other goods from South Korea. He met directly with U.S. Trade Secretary Howard Lutnick in Washington a while ago.
Other Asian countries affected are Thailand. Thai Minister of Finance Pichai Chunhavajira said he was slightly surprised by the latest tariff. However, he is confident that the tariff will return to its previous level. Thailand faces a 36 percent tariff on its exports to America.
Malaysia also received a "love letter" from the White House. In this letter, it was stated that its export tariff to America is 25 percent. Previously, it was 24 percent.
"Malaysia is committed to continuing its engagement with the US toward a balanced, mutually beneficial, and comprehensive trade agreement," said the Ministry of Investment, Trade, and Industry in an official statement.
Outside of Asia, South African President Cyril Ramaphosa disagrees with the 30% tariff. He responded directly through his X account.
"Such a tariff is not an accurate representation of the available trade data," said Ramaphosa. He also said that 77 percent of American goods entered the country without tariffs.
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