Trump Outlines 3 Demands to Cancel Indonesia's Import Tariffs

TEMPO.CO, Jakarta - President of the United States Donald Trump has offered to cancel the 32 percent import tariff for Indonesia. According to him, the U.S. is willing to reduce or even eliminate reciprocal tariffs if the government of President Prabowo Subianto meets several requirements.

"These tariffs may be modified, upward or downward, depending on our relationship with your Country. You will never be disappointed with The United States of America," said Trump in his letter uploaded on the Truth Social social media account on Tuesday, July 8, 2025.

So, what are Trump's requirements?

1. Investing in the U.S.

Trump said his country will cancel the imposition of a 32 percent import tariff if Indonesia decides to build a factory in the U.S. He also promised to expedite all processes if Indonesia is interested in establishing manufacturing facilities in the U.S.

"As you are aware, there will be no tariff if Indonesia, or companies within your country, decide to build or manufacture products within the US," said Trump in his letter addressed to Prabowo.

Trump believes that imposing import tariffs on its trading partners is necessary to eliminate trade deficit disparities. Therefore, by investing in the U.S., Trump promised to remove the 32 percent tariff that will become effective on Friday, August 1, 2025.

"We will do everything possible to get approvals quickly, professionally, and routinely -- in other words, in a matter of weeks," said Trump.

2. Opening Market Access for U.S. Products

In addition to establishing production facilities in the U.S., Trump also asked Indonesia to open its market to more products from the United States immediately. He believes that the Indonesian market has been closed, causing trade imbalances.

Trump said that he may consider adjusting this letter if Indonesia opens a previously closed trade market to the U.S. and removes its tariff, non-tariff, and trade barriers.

3. Removing Trade Tariffs, Non-Tariffs, and Trade Barriers

Not only that, Trump also urged Indonesia to eliminate its trade barriers, including tariffs and other non-tariff policies. According to him, these policies have caused a trade deficit, which threatens the U.S.'s economy and national security.

"We have had years to discuss our Trading Relationship with Indonesia, and have concluded that we must move away from these long-term, and very persistent, Trade Deficits engendered by Indonesia’s Tariff, and Non-Tariff, Policies and Trade Barriers. Unfortunately, our relationship is far from reciprocal," said Trump.

Previously, the Office of the U.S. Trade Representative (USTR) reported that the U.S.-Indonesia trade deficit reached $17.9 billion in 2024, marking a 5.4 percent increase, or $923 million, from 2023.

Anastasya Lavenia Yudi contributed to this article

Editor's Choice: Indonesia's Tariff Negotiation with US to Continue for Three Weeks

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