Indonesia Could Face 10-20% U.S. Tariffs Due to Lack of Trade Deal, Says Minister

February 20, 2025 | 11:33 pm

TEMPO.CO, Jakarta - Coordinating Minister for Economic Affairs Airlangga Hartanto said that Indonesia will continue to face import duties ranging from 10 to 20 percent when exporting goods to the United States. This is due to the lack of a free trade agreement (FTA) between Indonesia and the U.S.

"We are still subject to 10-20 percent because we do not have an FTA yet," said Airlangga at the Trade Ministry Office in Jakarta on Thursday, February 20, 2025.

Airlangga noted that U.S. President Donald Trump has taken steps to withdraw or revise trade agreements with Canada and Mexico. For China, a known competitor in the ongoing trade disputes, the Republican politician has increased tariffs by 10 percent, especially on steel commodities.

"But for Indonesia, Indonesia now does not get tariff prevalence with Europe or America," the Golkar Party politician explained.

However, Airlangga affirmed that there has been no immediate disruption to the trade sector following Trump's increase in import tariffs.

The politician and businessman remains optimistic about Indonesia's trade prospects on the global stage. He expressed hope that Indonesian trade will be resilient in the face of current geopolitical uncertainties.

"Of course, we will monitor it. With trade as it is now, we are still optimistic in this situation," Airlangga emphasized.

Trump has previously imposed a 25 percent tariff on goods from Canada and Mexico, citing concerns related to immigration and drug issues. Additionally, a 10 percent import levy has been imposed on goods from China. The U.S. President, who is currently serving his second term, has pledged to extend tariffs to include India, Russia, BRICS nations, and the European Union.

Import duties of up to 200 percent could be imposed on vehicles imported from Mexico and Canada. Trump also intends to expand tariffs on semiconductors, metals used in military hardware production, pharmaceuticals, and oil and gas.

Editor's Choice: Malaysia Says Asean Plans U.S. Summit to Discuss Tariff Concerns

Click here to get the latest news updates from Tempo on Google News

Malaysia Says Asean Plans U.S. Summit to Discuss Tariff Concerns

3 jam lalu

Indonesia's Current Account Deficit Deepens in 2024, Seen Wider in 2025

6 jam lalu

Growing Tension: Donald Trump Labels Zelensky as a Dictator Without Elections

11 jam lalu

Indonesia Budget Efficiency Cuts Remain at $18.8 Bln, Finance Ministry Says

2 hari lalu

Indonesian Govt Sees DeepSeek as AI Alternative Despite Other Countries Ban

3 hari lalu

Donald Trump to Meet Vladimir Putin 'Very Soon' to Discuss Ukraine War

3 hari lalu

Minister: Indonesian Government Will Soon Issue Electric Motorcycle Incentives

3 hari lalu

Trump Backs 'Hard Stance' on Gaza, Says He Does Not Know What Israel Will Do

5 hari lalu

India, U.S. Agree to Resolve Trade and Tariff Rows After Trump-Modi Talks

6 hari lalu

Trump Says TikTok Deadline Could Be Extended

6 hari lalu