Trump’s Tariffs Could Reach 47%, Negotiations with the U.S. Set to Conclude in 60 Days
JAKARTA – The Indonesian government is engaged in intensive negotiations with the United States to reduce high import tariffs on several of Indonesia's key export products. Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the import tariffs, referred to as the "Trump tariffs," imposed on Indonesia could reach 47%, especially on products like textiles and garments.
In a virtual press conference on Friday (April 18, 2025), Airlangga explained that the tariffs result from the sum of the base tariff and an additional 10% tariff applied for a 90-day period. “With the additional 10%, the tariff becomes either 10% plus 10%, or 37% plus 10% (ranging from 20% to 47%),” Airlangga said, as quoted by Bisnis.com.
This situation has become a major concern for the Indonesian government, as the additional costs from these tariffs burden U.S. buyers and require Indonesian exporters to share the burden. “The additional costs are being asked by buyers to be shared with Indonesia, not just the buyers who pay those taxes,” he added.
These high tariffs affect garments, footwear, furniture, and shrimp. Compared to competitors in ASEAN and other Asian countries, the tariffs on Indonesian products are considered much higher. According to data from Statistics Indonesia (BPS), knitted apparel products (HS 61) contributed to a trade surplus of US$433.3 million in February 2025, while footwear products (HS 64) recorded a surplus of US$407.7 million.
In the meeting with the Office of the U.S. Trade Representative (USTR) and the U.S. Department of Commerce, Airlangga Hartarto mentioned that Indonesia is one of the first countries accepted to negotiate directly with the U.S. government regarding the Trump tariffs. “Indonesia became one of the countries accepted early to discuss the Trump tariffs with the U.S. government,” said Airlangga, as quoted by Kontan.co.id.
Furthermore, he stated that Indonesia and the U.S. have agreed on a framework for the agreement, including the format of the negotiations to be carried out by the technical teams from both countries. The goal is to complete the entire negotiation process within 60 days. The contents of the agreement include trade and investment cooperation, the management of critical minerals, and strengthening resilient and sustainable supply chains.
As part of the negotiation, the Indonesian government hopes that 20 of its key export products will receive equitable tariffs, or at least not higher than those of competing countries. This is in line with efforts to maintain the competitiveness of Indonesian products amid the increasingly protectionist trade policies of the U.S. (KEN)
