TEMPO.CO, Jakarta - U.S. President Donald Trump has lowered the import tariff on Indonesian goods from 32 percent to 19 percent. However, this reduction comes with conditions. In exchange, U.S. exports to Indonesia will face no tariffs or non-tariff barriers.
Trump described the agreement as a historic milestone achieved after direct talks with President Prabowo Subianto. He claimed this marked the first time the U.S. had full and unrestricted access to the Indonesian market.
Trump Plans Tariff Notifications for 150 Smaller Nations
Beyond Indonesia, Trump also intends to notify over 150 smaller countries of the tariff rates they will face. “They’re not big countries, and they don’t do that much business. Not like the ones we’ve agreed with, like China, like Japan,” Trump said on Wednesday, July 16, as quoted by Politico.
Currently, all countries are subject to a base tariff of 10 percent, which Trump introduced in April. He has signaled that this rate may rise to 15 or even 20 percent.
So far, about two dozen letters have been sent to key trading partners such as the European Union, Japan, and South Korea, informing them of the new tariff levels that are scheduled to take effect on August 1. This has triggered the final stages of intense negotiations as affected countries push for more favorable terms.
Uncertainty Over Implementation and Impact
Despite the deadline, doubts remain over whether the new tariffs will be enforced as planned. Many are concerned about the economic consequences and the potential impact on Trump’s approval ratings.
Some countries that accounted for more than 3 percent of the U.S. trade deficit in 2024, such as Taiwan, Switzerland, and India, have not yet received tariff letters.
Regarding India, Trump shared mixed messages on Wednesday. He initially said that talks were ongoing and that a deal might be reached. Shortly after, he added that the U.S. was "very close" to finalizing a new agreement with India.
As for Japan, a major trading partner Trump once threatened with a 25 percent tariff, negotiations are still underway. “I think we’ll probably live by the letter with Japan,” he said, though he remained uncertain about whether a final deal would materialize.
Rafif Nur Tahta Bagaskara contributed to the writing of this article.
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