Trump Officially Imposes 32 Percent Import Tariff on Indonesian Products, Effective August 1, 2025

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Trump Officially Imposes 32 Percent Import Tariff on Indonesian Products, Effective August 1, 2025

RUBLIK DEPOK - U.S. President Donald Trump officially announced an import tariff policy of 32 percent on various products from Indonesia. This tariff will take effect starting August 1, 2025, delayed from the original schedule that was supposed to be implemented on July 9.

Indonesia Enters the List of 14 Countries Subject to New Tariffs by the US

This policy was announced after Trump sent an official letter to the Indonesian government, stating that this measure is part of an international trade balancing strategy. Indonesia is on the list of 14 countries that received a direct notice letter from the US government regarding the new tariffs.

Other countries also affected by this new wave of policies include Malaysia, Thailand, Myanmar, Laos, Cambodia, Bangladesh, Serbia, Bosnia, Kazakhstan, South Africa, and Tunisia. Japan and South Korea experienced similar policies even earlier, although both are strategic allies of the United States.

Trump announced that these tariffs are strict and will be increased by another 25 percent if those countries take retaliatory actions such as raising tariffs on American products. He stated this openly through his official Truth Social account.

Direct Impact on Indonesia's Exports

The application of a 32 percent import tariff by the US on Indonesian products will have a direct impact on major export sectors, such as textiles, furniture, rubber products, electronics, and processed foods. The largest destination for Indonesia's exports includes the United States, so this policy change is considered capable of exerting pressure on the national trade balance.

According to data from international trade institutions, Indonesia's exports to the United States in 2024 reached more than US$27 billion. Meanwhile, imports from the US were only about US$9 billion, resulting in a trade deficit of US$18 billion for the US with Indonesia. This situation is the main reason behind Trump's decision.

International Responsibilities and Indonesia's Position

Some countries on the tariff list have started diplomatic approaches to negotiate exemptions or exceptions. The UK and Vietnam are two countries that have so far succeeded in obtaining exemptions after conducting intensive discussions with the US government.

On the other hand, to date, there has been no official statement from the Indonesian government regarding the diplomatic response to Trump's policy. However, some officials from the Ministry of Trade and the Ministry of Foreign Affairs are reportedly preparing strategic diplomatic measures to prevent further impacts on the national economy.

Potential Domino Effects on Global Trade Relations

This unilateral tariff policy is viewed by economic observers as part of the increasingly aggressive U.S. economic protectionist strategy. This action is feared to trigger a domino effect, where other countries also impose retaliatory measures, ultimately disrupting global trade stability.

Local business actors also voiced their concerns. They urged the government to take immediate action, whether through trade negotiations or by seeking more stable and open alternative export markets. Some industry associations have expressed readiness to expand exports to Europe, the Middle East, and African countries.

Market Mitigation and Expansion Strategies

The Indonesian government is also considering accelerating economic cooperation with non-traditional regions, such as East Africa, South Asia, and Latin America. In addition, strategies for providing incentives to exporters, as well as improving product quality and certification, will be intensified to maintain the competitiveness of products in the international market.

These proactive steps are expected to minimize the direct impact of US tariff policies, while also promoting the diversification of Indonesia's export markets so that it is not dependent on a single main destination country.

With the increasingly complex global dynamics, the government is driven to respond quickly, carefully, and strategically so that the export sector continues to grow and can become the main driver of the national economy.



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