TEMPO.CO, Jakarta - U.S. President Donald Trump has offered Indonesia a chance to avoid the planned 32 percent import tariff, provided that President Prabowo Subianto’s administration meets certain conditions.
In a letter addressed to Prabowo, Trump said he would revise the tariffs immediately if Indonesia agrees to establish production facilities in the United States. He also assured that the process would be expedited if Indonesia decides to invest in the country.
"As you are aware, there will be no tariff if Indonesia, or companies within your country, decide to build or manufacture products within the US, and in fact, we will do everything possible to get approvals quickly, professionally, and routinely -- in other words, in a matter of weeks," Trump wrote in the letter, which he shared on his Truth Social account on Tuesday, July 8, 2025.
Trump also called on Indonesia to open its market to U.S. products, which he said had been restricted by various tariff and non-tariff barriers. He urged the Prabowo administration to eliminate such barriers, arguing that they have harmed bilateral trade and contributed to what he described as an unsustainable trade deficit with the U.S. Trump also asked for understanding regarding the imposition of tariffs.
In his message, Trump noted that the tariffs, although significant, were still relatively modest compared to what he believes is necessary to offset the U.S. trade imbalance with Indonesia.
According to data from the United States Trade Representative (USTR), the U.S. trade deficit with Indonesia reached US$17.9 billion in 2024—up 5.4 percent, or US$923 million, from 2023.
Trump further said that the U.S. had spent years discussing its trade relationship with Indonesia and ultimately concluded that it was time to move away from the persistent and long-standing trade imbalance.
“We have had years to discuss our Trading Relationship with Indonesia, and have concluded that we must move away from these long-term, and very persistent, Trade Deficits engendered by Indonesia’s Tariff, and Non-Tariff, Policies and Trade Barriers,” he wrote, noting that similar letters had been sent to other nations with comparable trade dynamics.
The 32 percent import tariffs, originally delayed for 90 days, are now set to take effect on Friday, August 1, 2025. Trump said the extension was made after evaluating recent developments, recommendations from senior officials, and the status of negotiations with several trade partners, as outlined in a statement on the White House website.
"These tariffs may be modified, upward or downward, depending on our relationship with your country," Trump said, adding, “You will never be disappointed with The United States of America.”
Anastasya Lavenia Yudi contributed to the writing of this article.
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