Judul : Trump Threatens Higher Tariffs on August 1, Indonesia Faces 32%
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Trump Threatens Higher Tariffs on August 1, Indonesia Faces 32%
The White House announced the implementation of reciprocal tariffs on July 9 has been postponed. The US sent a "warning letter" regarding new tariffs that will take effect on August 1 to its trading partners, including Indonesia.
The United States (US) has warned its trading partners to negotiate new agreements. If not, starting August 1, 2025, the US is prepared to implement increased import tariffs according to the proposed reciprocal or mutual tariff rates by President Donald Trump.
That was stated in a letter sent by Trump to US trading partner country On Monday (07/07). In the letter, Donald Trump warned that they would face higher import tariffs in the near future if an agreement is not reached.
"President Trump will send a letter to several of our trade partners stating that if they do not speed up the process, from August 1st, they will revert to the tariff levels of April 2nd. I am sure we will see many agreements quickly," said U.S. Secretary of the Treasury Scott Bessent during a CNN "State of the Union" broadcast on Sunday (06/07).
This implementation caused the Wall Street stock market to plummet. However, so far, the Asian market has responded calmly.
Several countries continue to struggle to finalize agreements with the US since Trump launched a global trade war in April. These tariffs have also disrupted financial markets.
However, US trade partners received a delay after Trump extended the negotiation deadline until August 1 through an executive order.
Trump's letter to Prabowo: Indonesia faces 32% tariffs
According to various sources, the Indonesian government received a letter on official White House stationery dated July 7, 2025. The content states that Indonesia will be subject to a 32% tariff on all products sent to the United States.
Tariff 32% imposed on Indonesia It is quite high compared to Malaysia's import tariff of 25%. However, compared to other countries in ASEAN, Indonesia is still relatively lower. For example, Myanmar and Laos have tariffs of 40%, and Thailand and Cambodia have tariffs set at 36%.
Tim DW has tried to obtain information from the Indonesian government through the Presidential Communication Office (PCO). However, until this article is published, there has been no response from the government.
What is the rate for Japan and South Korea?
Donald Trump said that the US will impose 25% tariffs on imports from Japan and South Korea, which will also take effect starting August 1, 2025. These two US trading partners are the first group to receive the letter.
In April 2024, Trump announced a 90-day pause that ended on July 9th, for tariffs ranging from 10-50% on dozens of countries, including most of the US's major trade partners.
Scott Bessent emphasized that the August target "is not a new deadline" for negotiations.
"We state this as the implementation time. If you want to speed it up, please do. If you want to go back to the old rate, that's your choice," he emphasized.
The higher tariff that will take effect from August 1, 2025, will not be combined with the sectoral tariffs previously announced, such as the tariffs for vehicles, steel, and aluminum. For example, Japanese vehicle tariff, The amount will remain at 25%.
On Tuesday (08/07), Japanese Prime Minister Shigeru Ishiba said that some progress has been made to avoid higher tariffs up to 35%, the new level recently suggested by Trump.
"We have received a proposal from the United States to immediately resume negotiations toward the newly set August 1 deadline, and depending on the Japanese government's response, the contents of the letter can be revised," Ishiba explained during a meeting with cabinet ministers to discuss Japan's strategy regarding tariffs.
Meanwhile, South Korea said it plans to intensify trade negotiations with the US and considers Trump's latest plan effectively extending the deadline for imposing retaliatory tariffs.
"Kami akan meningkatkan negosiasi selama periode yang tersisa untuk mencapai hasil yang saling menguntungkan untuk segera menyelesaikan ketidakpastian dari tarif," ujar Kementerian Perindustrian Korsel.
AS-EU continues to hold talks
European Union (EU) is among the parties at risk. Without an agreement, import tariffs on EU goods could surge by up to 50%. This is likely to have an impact on everything from French cheese to German electronic products.
Negotiator UE and the US have held talks to reach a new agreement.
Meanwhile, Scott Bessent said that Trump's strategy is to apply "maximum pressure," while mentioning the EU as one example. He noted that the EU "has made very good progress," after having started slowly.
The AShampir government has reached several agreements," said Scott. "I expect there will be a number of major announcements in the coming days.
For now, an agreement has been reached with the UK and Vietnam.
The EU side said that they hope to reach an agreement. However, UE is also ready to retaliate With the rate on US exports.
If calculated, in 2024 the value of goods and services trade between the EU and the US reached €1.7 trillion (approximately Rp29,750 trillion). On average, this amounts to €4.6 billion (approximately Rp80.5 trillion) per day, according to the European Union's statistical office, Eurostat.
However, some sources from the EU stated that this Blue Block will not accept the letter setting higher tariffs. This was conveyed on Monday (07/07) to the Reuters news agency.
Europe itself is divided in choosing the steps to promote a fast and light trade agreement or to use its economic influence to negotiate better results.
Europe seems already desperate to reach a comprehensive trade agreement before the July 2025 deadline.
This article was first published in English and is accompanied by Indonesian context.
Adapted by: Muhammad Hanafi
Editor: Tezar Aditya and Rahka Susanto
ind:content_author: Lisa Louis (Source: AFP, AP, Reuters)
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