Indonesia's Economic Minister Flies to US to Negotiate 32% Tariff

Indonesia's Coordinating Minister for Economic Affairs, Airlangga Hartarto, is traveling to Washington, D.C. to negotiate with U.S. officials regarding the planned 32 percent import tariffs on Indonesian products set to take effect on August 1, 2025, following a letter from President Donald Trump to President Prabowo Subianto. The tariff implementation date was initially July 9 but was extended by Trump to provide more time for negotiations, with Trump also indicating openness to reducing tariffs if Indonesia invests in manufacturing within the U.S. Indonesia has proposed reducing duties on key U.S. goods, encouraging U.S. investment in critical minerals, and increasing imports of U.S. products to ease trade tensions. A $34 billion trade deal involving Indonesian companies like Garuda Indonesia and Indofood and U.S. partners is expected to support these negotiations, including a memorandum of understanding for Indonesia to purchase at least 1 million tons of U.S. wheat annually from 2026 to 2030. Indonesian officials remain optimistic about securing a favorable outcome, emphasizing strong bilateral relations as a foundation for successful talks.