US President Donald Trump has signed an order to impose new import tariffs of 32% on all goods from Indonesia beginning August 1, 2025, regardless of industry and previous tariffs.
“From August 1, 2025, we will impose tariffs on Indonesia of just 32 percent on all Indonesian products delivered to the United States, separate from other sectoral tariffs,” Trump said in a White House letter dated July 7 to Indonesian President Prabowo Subianto.
Trump justifies the decision as a fight against the US trade deficit. He notes that this level of duties is “much lower” than required to balance the scales.
He also indicated that the tariff could be revoked if Indonesia starts producing goods on US soil or opens its market further to American products.
The American leader threatens to impose even higher tariffs if Indonesia introduces retaliatory duties.
Trump may relax or remove the tariffs if Indonesia changes its trade policy and creates a “more open market ecosystem.”
✅ Indonesia needs to strengthen dialogue with the US and accelerate proposal submissions before August 1.
✅ Incentives to move production to the US may reduce tariffs.
✅ Export recommendations to other regions to reduce dependency on the US.
✅ Enhanced monitoring of trade risks and analytics needed to adapt to changing tariffs.
Indonesia must critically respond swiftly to protect its exporters and minimize negative economic effects.
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