Trump's Tariff Policy Facts That Shock Many Countries

Trump's tariff policy fact. (Instagram @whitehouse)

YOGYAKARTA - Trump announced the reciprocal tariff policy imposed on a number of countries, one of which is Indonesia which will be implemented effectively soon. So what are the facts of Trump's tariff policy? Check out the full review below.

United States President Donald Trump issued a new import tariff policy on Wednesday (2/4/2025) which shocked many countries. At the time he delivered his speech, he explained the new import rate policy step as part of the liberation day, which aims to free America's economy from dependence on imports.

"This is a form of our economic independence. Factories and jobs will reappear in America, and it has begun to appear," Trump explained in his speech.

This policy is in the form of a tax percentage imposed on the value of an item imported from other countries. For example, a tariff of 25 percent is applied to imported products for US$10, so that the price of the product is charged an additional US$2.5.

Trump has applied a 10 percent import rate to foreign countries in the world that trades products to the US. This 10 percent universal tariff is effectively implemented from Saturday (5/4/2025). Trump said import rates were a response to actions taken by other countries in limiting exports of products from the US.

The amount of tariffs is determined according to the monetary levy of each country on imported products from the US, as well as non-moneter trade barriers, such as regulations that make it difficult for US products to enter the market. However, he claims reciprocal rates are only half of the import rates of other countries on US products.

Trump said the levy, referred to as the 'retaliatory rate', was designed for the company to move manufacturing activities to the United States and also as punishment for companies producing goods abroad. He said the policy was implemented to increase federal government revenue. In fact, this tariff is said to be a substitute for income tax.

This reciprocal tariff policy has been announced to a number of countries, including Indonesia, which will be effective soon.

According to Trump, the application of this tariff will strengthen the domestic industry and protect local products from imported attacks. The policy is part of a broader economic strategy to achieve national economic or security goals. However, the application of Trump's tariffs to imported goods from abroad will have a negative impact on the United States economy.

This high tariff policy is certainly a hard blow for Indonesia, which is subject to an import duty of 32 percent. Several countries, including Indonesia, are subject to a 'returns' tariff because Indonesia imposes tariffs on goods from the US that enter Indonesian territory. For Indonesian exporters, this new import tariff policy greatly affects the system. So far, the textile, furniture, rubber, footwear, and fisheries industries rely on the US market as one of the main export destinations.

The impact of Trump's tariff policy which will soon be felt is the weakening of the rupiah exchange rate against US dollars. Furthermore, many large companies carried out massive layoffs related to their business against elements of the US dollar, until the decline in tax revenues.

Presiden Prabowo Subianto dan Perdana Menteri Malaysia Anwar Ibrahim membahas dampak kebijakan tariff Trump terhadap ASEAN di Malaysia, Minggu (6/4/2025). Sementara itu, dilansir dari Antara, Menteri Koordinator Bidang Perekonomian Airlangga Hartarto menyebutkan, untuk mencari jalan tengah terkait kebijakan tariff ini, pemerintah akan melakukan negosih kembali dengan AS.

Other ASEAN countries are subject to various different rates, such as the Philippines 17 percent, Cambodia 49 percent, Singapore 10 percent, Malaysia 24 percent, Thailand 36 percent, and Vietnam 46 percent.

That's an explanation of the fact of Trump's tariff policy. Visit VOI.id to get other interesting information.