Tariff Talks Underway Between US and Several Countries

TEMPO.CO, Jakarta - Negotiations between the Indonesian and United States governments concerning reciprocal tariffs remain in limbo. Indonesian Coordinating Minister for the Economy Airlangga Hartarto hopes that these negotiations will yield results soon and that the tariffs could be lower than those of Vietnam.

To facilitate the negotiations, the Indonesian government is set to sign a memorandum of understanding regarding energy imports and investments, totaling $34 billion, on Monday, July 7, 2025. Of this, an amount of US$15.5 billion will involve a commitment to import energy from the U.S.

U.S. President Donald Trump has given a deadline of July 9, 2025, for negotiations on these reciprocal tariffs. So far, several countries have agreed with the United States regarding these reciprocal tariffs.

Deal with Vietnam

As reported by NPR on July 2, 2025, the U.S. will impose a 20 percent import duty on goods from Vietnam and a 40 percent for goods from other countries that are sent through Vietnam. However, contrary to his statement, these tariffs will be paid by American importers, not Vietnam.

Trump stated that in return, Vietnam would grant American products "full access" to its market with a zero percent tariff. Previously, Trump had proposed a 46 percent tariff for Vietnam imports to reduce the trade deficit.

Deal with the UK

The trade deal with the UK, which came into effect on June 30, 2025, stipulates a 10 percent tariff on exports to the U.S., including cars, with a quota of 100,000 units per year before the tariff increases to 24 percent. This deal with the UK replaces the previous 50 percent tariff imposed by the U.S.

With this agreement, the UK becomes the first country to agree to a trade deal with Trump. As the largest export market for cars to the UK, the U.S. accounted for over 27 percent of total car exports last year.

Deal with Japan

Trump doubts that a deal with Japan will be reached before the July 9, 2025 deadline. He threatens to raise import tariffs by up to 35 percent and has also criticized Japan for rejecting American rice imports and the trade imbalance in cars.

The White House stated that negotiations with Japan are not as high a priority as those with India. According to Nikkei, if an agreement is not reached, Japanese goods will be subject to tariffs of up to 24 percent once the 90-day tariff pause ends. Japan has failed to lobby the U.S. for tariff exemptions despite sending envoys to Washington.

Editor's Choice: Indonesia Seeks Lower Tariffs Than Vietnam in Ongoing U.S. Negotiations

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