No Discount, Trump Decides to Maintain 32 Percent Import Tariff on Indonesia

TEMPO.CO, Jakarta - The President of the United States, Donald Trump, has decided to maintain a 32 percent import tariff on Indonesia, unchanged from the 'reciprocal tariff' announced earlier in April, despite the ongoing intensive negotiations with Indonesia.

"Starting from August 1, 2025, we will impose a 32 percent tariff on all Indonesian products shipped to the United States, separate from other Sectoral Tariffs," Trump said in a letter dated July 7, addressed to the President of Indonesia, Prabowo Subianto, as reported by Antara on Tuesday, July 8, 2025.

In the letter he posted in its entirety on his social media, Trump felt that the United States must act to address the trade deficit they have experienced after years of trade cooperation with Indonesia.

"Please understand that this 32 percent figure is far less than what is needed to eliminate the Trade Deficit disparity with your country," Trump said in the letter.

If Indonesia is seen to respond by raising tariffs, Trump threatened to retaliate by adding the import tariff value "plus the 32 percent tariff that we set."

However, Trump promised that Indonesia would not be subject to tariffs if they "decide to build or produce its products in the United States," while guaranteeing that their application will be processed and approved within weeks.

He also stated that the tariff figure could still change if Indonesia agrees to adjust its trade policies and create a more open national market ecosystem for the United States.

In addition to Indonesia, Trump also openly released a decision to impose tariffs on other countries through his social media, which he addressed to the respective heads of state.

Several of Indonesia's partners in Southeast Asia received a reduction in the value of import tariffs imposed by the United States, such as Thailand and Cambodia, both subject to an additional tariff of 36 percent compared to the previous 36 and 49 percent, respectively.

Malaysia, on the other hand, faced a different fate, as it is now subject to a 25 percent import tariff, an increase of one percentage point from the previous tariff of 24 percent.

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