Judul : US President Donald Trump Imposes 32 Percent Import Tariffs, What Is the Impact on Indonesia's Industry?
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US President Donald Trump Imposes 32 Percent Import Tariffs, What Is the Impact on Indonesia's Industry?
Best for you - U.S. President Donald Trump imposed a 32% tariff on all Indonesian products sent to the United States, what is the impact on Indonesia?
Donald Trump addressed the issue of import tariffs in a letter he uploaded in full on his social media account.
The letter is from the White House, dated July 7, addressed to President of Indonesia Prabowo Subianto.
Starting August 1, 2025, we will charge Indonesia a Tariff of only 32 percent for all Indonesian products sent to the United States, separate from other Sectoral Tariffs, said Donald Trump, Tuesday (7/8/2025).
In his opinion, the US should take action to address the trade deficit they have experienced after years of trade cooperation with Indonesia.
"Please understand that this 32 percent figure is much less than what is needed to eliminate the trade deficit with your country," he said.
Nevertheless, if Indonesia is assessed to retaliate by raising tariffs, Trump said he would add the import tariff value according to that "plus a 32 percent tariff we have set."
However, when Indonesia decides to produce its products in the United States, Donald Trump promised not to impose tariffs.
She also ensures that her request will be processed and approved within weeks.
Trump said that the tariff numbers could still change if Indonesia agrees to adjust its trade policies and create a more open national market ecosystem towards the US.
In addition to issuing the decision letter for Indonesia, he also openly uploaded the tariff imposition decision letters to other countries, addressed to each respective head of state.
Its arrival in Indonesia
What is the impact of increased import tariffs to the US?
Director of the Center for Economic and Law Studies (Celios), Bhima Yudhistira Adhinegara, said that the latest announcement by Donald Trump marks the failure of the government's negotiations with the US, which have been intensified in recent months.
Because the amount of this import tariff has not changed from Trump's previous announcement on April 2, 2025.
Even Trump also threatened to impose an additional 10 percent tariff on BRICS member countries, including Indonesia.
Thus, Indonesian goods entering the US may be subject to a 42 percent tariff.
"This means there is no progress in terms of negotiation," he said when contacted by Kompas.com on Tuesday (7/8/2025).
He stated that Trump's 32% tariff could significantly impact Indonesia's economy, especially in labor-intensive sectors such as footwear and clothing, whose markets are mainly directed to the US.
According to CELIOS calculations, Trump's 32 percent tariff on Indonesia will result in a decrease in national economic output of Rp 164 trillion.
Then, this Trump policy will also reduce labor income by Rp 52 trillion, decrease export value by Rp 105.9 trillion, and reduce labor absorption by 1.2 million people.
"this has a significant impact on Indonesia's economy because some labor-intensive sectors still depend on the US," said Bhima.
Meanwhile, Yusuf Rendy Manilet from the Center of Reform on Economic (CORE) Indonesia said that the imposition of import tariffs will have a significant impact, especially on certain industries.
Because this tariff targets the leading labor-intensive export sectors.
With the additional tariff burden, our product becomes relatively more expensive and risks being abandoned by American importers who look for cheaper alternatives from other countries.
"In the short term, this could suppress the income of industry players and affect the workforce, especially in production centers," he told Kompas.com on Tuesday.
For example, the palm oil industry, although the US is not a main market for Indonesian palm oil products, Indonesia has lost some access to high-value added product markets.
This can reduce export volumes and weaken Indonesia's position in the global value chain for agribusiness products.
Then, labor-intensive industries such as textiles and clothing also have the potential to lose competitiveness in the US market because their prices cannot be competitive with products from other countries that are not subject to similar tariffs, such as Vietnam and Bangladesh.
This will affect the reduction of textile and clothing orders from American buyers and impact the sustainability of small and medium enterprises in this sector.
Similarly, other labor-intensive industries such as footwear and rubber have contributed significantly to the US market in terms of volume.
"This certainly is something that needs to be anticipated, considering the TPT industry is already under pressure domestically. In other words, their market share has decreased both from the domestic and global sides, due to these tariffs," he said.
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