Indonesia Proposes Trade Tariff Reductions to U.S.

Indonesia is planning to propose a reduction in trade tariffs with the United States as President-elect Donald Trump prepares to implement a universal tariff policy, which could exacerbate existing trade tensions. During the Indonesia Business Competitiveness Outlook 2025 Conference, Economic Minister Airlangga Hartarto emphasized the need for bilateral cooperation to mitigate potential tariff hikes, particularly as Trump has threatened a 100% tariff on BRICS nations if they pursue a rival currency to the U.S. dollar. Despite long-standing U.S. tariffs on Indonesian goods like shoes and apparel, Hartarto noted that Indonesia has developed a degree of immunity to these trade barriers. He highlighted the disparity in U.S. tariff policies, citing that countries like Vietnam benefit from exemptions. In 2023, bilateral trade between Indonesia and the U.S. reached $34.5 billion, with Indonesia maintaining a significant trade surplus. The proposal for tariff cuts could also pave the way for a potential free trade agreement between the two nations.