US Maintains 32% Import Tariffs on Indonesia, Negotiations Continue Amid $34B Trade Proposal

President Donald Trump has confirmed the continuation of a 32% import tariff on all Indonesian products entering the U.S. market starting August 1, 2025, as part of efforts to address the longstanding trade deficit between the two countries. Trump warned that if Indonesia retaliates by increasing tariffs, the U.S. will raise its tariffs by that amount plus the existing 32%, but offered exemptions if Indonesia produces or builds products in the U.S. Meanwhile, Indonesia is actively negotiating to reduce these tariffs, submitting proposals that include increasing imports of U.S. energy and agricultural products by up to $34 billion and investing through its sovereign wealth fund Danantara in critical mineral sectors such as nickel and copper. Indonesia also plans to import at least one million tons of American wheat annually over the next five years to mitigate the impact of tariffs. Both countries are negotiating trade terms with Indonesia aiming to create a more balanced and reciprocal trade relationship, while the U.S. maintains a firm stance on tariffs pending adjustments in Indonesia's trade policies. These developments highlight ongoing efforts to resolve trade imbalances amid broader tariff impositions on multiple countries by the Trump administration.