US Slaps 10% Forced Labor Tariff on Indonesia

US Slaps 10% Forced Labor Tariff on Indonesia

Jakarta. The US has slapped an additional 10% tariff on Indonesia for letting imported goods linked with forced labor enter the country.

In March, the Donald Trump 2.0 government launched a forced labor probe into Indonesia and dozens of other countries. On Tuesday Washington time, the US declared new tariffs of either 10% or 12.5%. The higher rate is for countries that have failed to not only impose, but also effectively enforce a prohibition on imported goods made with forced labor. Indonesia is subject to a lower rate for having bans in place, but lacks effective enforcement.

US Trade Representative Jamieson Greer slammed the failures as “unacceptable”.

“This creates a dynamic where American workers are forced to compete globally on an unlevel playing field,” Greer said.

Haryo Limanseto, the spokesperson at the Coordinating Ministry for Economic Affairs, told the Jakarta Globe that these were still interim investigations. Indonesia plans to submit written comments and join the upcoming public hearings.

“The Indonesian government remains committed to respecting human rights, labor protection, and implementing labor principles that are consistent with international standards,” Haryo said.

Jakarta also plans to engage in talks with the US side “in a constructive manner” while strengthening the implementation of import regulations.

Indonesia already has a tariff deal with the US government, although the pact remains subject to ratification. In its report, Washington wrote that Jakarta had “taken on commitments” on forced labor import prohibition under the pact. The latest tariff salvo is also just weeks ahead of the July 24 expiration of a 10% temporary tariff.

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