Government Responds to New US Tariffs, Continues Negotiations with USTR

The Indonesian government has confirmed it will continue communications with the United States following the imposition of new tariffs under a Section 301 investigation. The US move targets 60 countries, including Indonesia, over the alleged failure to effectively enforce import bans on goods produced through forced labour.

A spokesperson for the Coordinating Ministry for Economic Affairs, Haryo Limanseto, stated on Friday that the government is taking note of the US Trade Representative’s (USTR) decision. He highlighted that the USTR recognised Indonesia as a country that is actively committed and possesses a regulatory framework to prevent and eradicate forced labour practices in the global supply chain.

Indonesia is among 17 countries or territories, including Malaysia, India, Mexico, Canada, and the United Kingdom, subjected to an additional 10 percent tariff under Section 301 of the Trade Act of 1974. Haryo confirmed that the government will continue to engage with US authorities to discuss the decision, which was made under the direction of President Donald Trump, including matters concerning excess capacity.

He added that the Indonesian government routinely communicates with the US regarding the Section 301 investigation process. Indonesia has actively participated in the investigation, which covers the issues of manufacturing excess capacity and the import ban on goods produced by forced labour, by submitting written submissions, attending public hearings, and conducting intergovernmental consultations.