In a significant development in international trade, U.S. President Donald Trump has declared that Indonesia will face a 19% tariff as part of a new trade deal between the two nations. The announcement, made on Monday, July 14, 2025, marks a shift in U.S.-Indonesia trade relations, with the U.S. seeking to address trade imbalances and protect domestic industries.
President Trump, in a statement, explained that the tariff would be applied to Indonesian goods in response to what he described as unfair trade practices. He emphasized that the new tariff was a necessary measure to ensure fair competition and to safeguard American workers and businesses.
“The United States has been treated unfairly for too long, and this tariff will help level the playing field,” Trump said, adding that the U.S. is committed to holding trading partners accountable for trade practices that disadvantage American industries.
The decision to impose the tariff is expected to impact a wide range of Indonesian exports, including textiles, electronics, and agricultural products, which are significant to the country’s economy. Indonesia, which has long enjoyed a favorable trade relationship with the U.S., has yet to officially respond to the announcement.
Trade experts have warned that the move could escalate tensions between the two countries, potentially leading to retaliatory measures from Indonesia. However, the Trump administration remains resolute, insisting that the tariff is in the best interest of the American economy.
This tariff decision is part of a broader strategy by the U.S. to renegotiate trade agreements and confront countries it accuses of unfair trade practices, reflecting Trump’s ongoing “America First” approach to global commerce.
