US Import Tariffs for Indonesia Not Yet Final, Trade Minister Reveals Potential for Lighter Scheme
The Indonesian government continues to negotiate with the United States regarding import tariff policies that will be applied to national export products. The Minister of Trade, Budi Santoso, emphasised that the tariff rates currently proposed by the United States Trade Representative (USTR) are still dynamic and have not reached a final decision.
According to Budi, the Indonesian government is maintaining intensive communication with the US government to obtain a more competitive and advantageous tariff scheme for Indonesian export products in the American market. “It is still a proposal from America, which remains dynamic, and the Indonesian government is continuously approaching the US to secure better tariffs,” B Satoso stated at the Ministry of Trade Office in Jakarta on Monday (8/6/2026).
This statement signals that the negotiation space between the two nations remains open, meaning the tariff structure implemented could potentially undergo changes before being officially decided by the US government.
US Reciprocal Tariffs Replaced by New Policy
Budi explained that the previous US reciprocal tariff policy was cancelled following a US Supreme Court ruling. As a transitional measure, the US government has implemented a general tariff of 10 per cent on all its trading partner nations. This temporary tariff is effective for 150 days and is set to expire on 24 July 2026.
Following the end of this transition period, the US government plans to implement a new policy based on the results of trade investigations conducted under Section 301 of the Trade Act of 1974. These investigations focus on several issues, including allegations of forced labour practices and perceived structural excess manufacturing capacity in various countries.
Indonesia Included in Group with Lowest Proposed Tariffs
On 2 June 2026, the USTR released the preliminary results of its investigation, proposing new import tariffs for 60 countries under investigation. The investigation results proposed two tariff groups:
A 10 per cent tariff for 14 countries
A 12.5 per cent tariff for the remaining 46 countries
Indonesia is included in the group proposed to face a 10 per cent tariff, alongside several other nations such as Canada, Ecuador, the European Union, Mexico, Pakistan, Argentina, Bangladesh, Cambodia, El Salvador, Guatemala, Malaysia, Taiwan, and the United Kingdom.