Indonesia Faces Proposed Additional 10% Tariff by the US, Here's the Government's Response

REPUBLIKA.CO.ID, JAKARTA – The Indonesian government is preparing an official response after the United States Trade Representative (USTR) proposed an additional tariff of 10% on products originating from Indonesia. The proposal emerged after the USTR assessed that Indonesia has not effectively implemented a ban on imports of goods produced using forced labour practices.

The Spokesperson for the Coordinating Ministry for Economic Affairs, Haryo Limanseto, said that the government is currently reviewing the results of the USTR’s preliminary investigation conducted under Section 301 of the Trade Act of 1974.

“The Indonesian government is reviewing the USTR’s announcement regarding the results of the preliminary investigation under Section 301 of the Trade Act of 1974 concerning the policies and practices of several countries related to efforts to prevent the import of goods produced using forced labour,” said Haryo in Jakarta, Thursday (June 4, 2026).

In the investigation document, Indonesia is included in the group of six countries that are considered to have not effectively enforced the ban on imports of goods produced using forced labour. In addition to Indonesia, other countries on the list include Canada, Ecuador, the European Union, Mexico, and Pakistan.

The USTR assessed that this condition has the potential to hinder United States trade, and therefore proposed the implementation of an additional tariff of 10% on the countries concerned. Meanwhile, 54 other countries that are considered to have not yet implemented rules prohibiting the import of goods produced using forced labour are at risk of being subject to an additional tariff of 12.5%.

Haryo affirmed that Indonesia remains committed to implementing labour principles that are in line with international standards, including respect for human rights and the protection of workers.

The government, Haryo continued, will follow the stages prepared by the USTR, including submitting a written response and participating in a public hearing.

“In relation to the ongoing discussion process, the Indonesian government will continue to communicate constructively with the United States government,” said Haryo.

In addition to submitting an official response, the government is also working to strengthen supervision of imported goods to ensure that they do not originate from business activities that use forced labour practices.

“In line with this, the government will also continue to strengthen the implementation of import regulations and ensure that imported goods are not produced from business activities that use forced labour practices,” said Haryo.

The proposed additional tariff is part of the results of the USTR’s investigation of 60 of the United States’ main trading partners. This step is also one of the efforts of the Donald Trump administration to maintain trade tariff policies after some of its previous policies faced legal challenges domestically.