As of Sunday, April 20, 2025, here's the latest update on tariffs concerning Indonesia:
United States Tariffs on Goods from Indonesia:
Reciprocal Tariff: Indonesia is currently subject to a 32% reciprocal tariff imposed by the United States. This tariff was announced on April 2, 2025, as part of President Trump's "Liberation Day" tariff policy targeting countries with significant trade deficits with the U.S.
Effective Date: While the baseline 10% tariff on most countries took effect on April 5, 2025, the higher, country-specific reciprocal tariffs, including the one on Indonesia, were initially set to take effect on April 9, 2025.
90-Day Pause: However, like most countries (excluding China, Hong Kong, and Macau), Indonesia was granted a 90-day pause on these higher reciprocal tariffs, starting on April 9, 2025. During this pause, the tariff rate for Indonesian goods entering the U.S. has reverted to the baseline 10%.
Negotiations Underway: Indonesia is actively engaging in trade talks with the United States to seek a more competitive tariff rate and potentially mitigate or eliminate the 32% levy. High-ranking Indonesian officials have visited Washington D.C. for these negotiations, with a goal to complete discussions within 60 days from mid-April 2025.
Potential for Increased US Imports: As part of these talks, Indonesia has indicated a willingness to increase its imports of energy (including LPG, crude oil, and gasoline) and agricultural products (like wheat and soybeans) from the U.S. to help narrow the bilateral trade gap.
Easing of Indonesian Import Taxes: Indonesia has also announced plans to adjust its own import taxes on certain commodities, including lowering tariffs on electronics like mobile phones and laptops from 2.5% to 0.5%. Additionally, import duties on some U.S. goods, such as steel and medical equipment, may be reduced from 5-10% to 0-5%.
Indonesia's General Tariff Landscape:
Indonesia applies tariffs mainly on an ad valorem basis, with rates generally ranging from 0% to 20% for most items.
However, certain products like specific food items, alcohol, perfumes, cosmetics, plastics, ceramics, and cars can face higher duties, ranging from 30% to 170%.
Indonesia's average applied tariff rate was 8.1% in 2021.
Under the ASEAN Free Trade Agreement, duties on goods from other ASEAN countries are typically between 0% and 5%, with some exceptions.
Key Points and Potential Impacts:
The 32% tariff, if it comes into full effect after the 90-day pause, could significantly increase the cost of Indonesian goods in the U.S. market, potentially impacting sectors like electronics, apparel, footwear, and furniture.
Indonesia is actively lobbying the U.S. to reconsider the high tariff, emphasizing its efforts to introduce economic reforms and foster a fairer trade relationship.
The outcome of the ongoing negotiations will be crucial in determining the long-term tariff rates between the two countries.
Indonesia is also exploring stronger trade ties with other regions, such as the European Union and Australia, to offset potential losses in the U.S. market.
It's important to monitor the developments of these trade negotiations between the U.S. and Indonesia for the most up-to-date information on applicable tariff rates.