Trump's 'Trade War Volume III' Begins, Indonesia Among Nations Hit by New Tariffs
The administration of US President Donald Trump will impose new tariffs on 60 trading partners, including the European Union, just after midnight on Friday (Saturday Indonesian time). The official announcement was made through the Federal Register, the government’s official journal for publishing rules, regulations, policies, and executive orders.
Citing CNBC International and Reuters, the new import duties will range between 10% and 12.5%. These will effectively replace the temporary global tariff of 10% previously imposed by Trump, which expires concurrently with the implementation of the new rates. The earlier temporary tariff followed the US Supreme Court’s February 2026 striking down of Trump’s reciprocal tariffs, which had been enacted under emergency economic powers.
This latest round of tariffs is based on Section 301 of the US Trade Act of 1974, targeting unfair trade practices related to the use of forced labour in partner countries’ supply chains. The Office of the United States Trade Representative (USTR) stated that the new tariffs would apply to 60 trading partners and cover 99.4% of US trade. A senior Trump administration official described the action as the most extensive international labour rights measure ever taken by any country.
The tariffs will not affect commodities already subject to sanctions under Section 232 of the Trade Expansion Act of 1962, which allows for tariffs or import restrictions on products deemed to threaten national security, including automobiles, steel, aluminium, and copper. The announcement underscores the administration’s renewed aggressive use of tariffs, following a major legal setback to the president’s protectionist agenda earlier in the year. Trump has long touted tariffs as a key tool for generating revenue and gaining leverage over foreign trading partners, dismissing criticism that they burden US importers and raise consumer prices.
Regarding Indonesia, while official detailed lists have not been released, a USTR proposal circulated in June included Indonesia among nations facing a 10% additional tariff. The USTR argued that these countries, including Canada, Ecuador, the European Union, Mexico, Pakistan, Argentina, Bangladesh, Cambodia, Guatemala, Malaysia, Taiwan, and the United Kingdom, have only partial plans to address forced labour. A higher 12.5% tariff is proposed for 45 other countries under investigation, including China, India, Nigeria, Japan, South Korea, Australia, and New Zealand. US Trade Representative Jamieson Greer stated that the failure of major trading partners to address imports produced by forced labour is unacceptable and creates an uneven global playing field for American workers.