The United States CONTINUES To Apply 32 Percent Import Tariffs For Indonesian Products

JAKARTA - The United States (US) continues to impose a reciprocal import rate of 32 percent for products from Indonesia, which will take effect on August 1, 2025.

United States President Donald Trump said that this policy was called a firm step to correct a trade deficit that was considered unsustainable and detrimental to America's economy and national security.

"Starting August 1, 2025, we will charge 32 percent tariffs for all products from Indonesia that enter the United States, apart from all other sectoral rates. Goods that are forwarded through third countries to avoid higher tariffs will also be subject to these rates," he explained in a letter circulating, Tuesday, July 8.

In an official letter addressed to Indonesian President Prabowo Subianto, Trump emphasized that the trade relations between the two countries so far are not reciprocal and Indonesia is considered to have implemented various tariff and non-tariff barriers that make it difficult to access American products to the Indonesian domestic market.

"We have discussed years of trade relations with Indonesia, and we conclude that we must stay away from very persistent long-term policies that cause a large trade deficit due to non-tariff tariffs and policies as well as trade barriers from Indonesia. Our relationship so far, unfortunately, is not reciprocal," he said.

Trump also emphasized that the 32 percent tariff could be increased if Indonesia increased the return rate, but was open to lowering if Indonesia opened its market and removed various trade barriers.

"Please understand that this tariff is a necessary measure to improve inequality over the years due to tariff and non-tariff policies as well as trade barriers from Indonesia, which causes the trade deficit to be unsustainable towards the United States," he explained.

According to him, the 32 percent reciprocal tariff rate is actually much lower than what is needed to eliminate the trade deficit owned by Indonesia.

Trump also invited Indonesian business actors to invest directly in America, with a fast licensing process and incentives for companies that build domestically produced facilities.

"As you know, there will be no tariff for Indonesia, or for companies from your country, if they decide to build or produce products in the United States. In fact, we will do everything we can to speed up approval quickly, professionally, and regularly in other words, in a matter of weeks," he explained.

Trump also hopes to work with Indonesia as a trading partner for the years to come.

"If you want to open up your trade market that has been closed to the United States so far, and remove tariffs as well as non-tariff policies and trade barriers, we will probably consider adjustments to this letter. This tariff can be changed, up or down, depending on our relationship with your country. You will never be disappointed with the United States," he explained.