July 9, 2025
JAKARTA – United States President Donald Trump has sent a letter to President Prabowo Subianto pushing for progress in trade talks, warning that Washington will impose a 32 percent tariff on all Indonesian exports starting next month unless Jakarta works out a trade and investment deal with Washington.
In a letter dated Monday and posted to Trump’s Truth Social account, the US president said the measure was needed to correct what he described as “very persistent” trade imbalances caused by Indonesian tariff and nontariff barriers.
“Please understand that the 32 percent number is far less than what is needed to eliminate the trade deficit disparity we have with your country,” Trump wrote.
“There will be no tariff if Indonesia, or companies within your country, decide to build or manufacture products within the United States,” he added.
Read also: Trump slaps 25% tariffs on Japan, South Korea, Malaysia
The letter also warned that any retaliatory steps, including transshipments, would be met with even steeper duties.
While the tariff rate on Indonesia remains unchanged from the level imposed in April, the letter signals a renewed US push for talks, with Trump formally extending the deadline for negotiations from July 9 to Aug. 1.
Trump publicly issued letters to a dozen national leaders, unveiling new tariff rates and urging them to invest in the US.
Other Southeast Asian countries saw adjustments to tariffs looming over their US-bound exports: Malaysia’s rate rose slightly to 25 percent, while Laos, Myanmar and Cambodia saw cuts to 40 percent, 40 percent and 36 percent, respectively. Thailand’s rate remained unchanged at 36 percent.
Vietnam, meanwhile, clinched a deal last week to lower its tariff to 20 percent, undercutting Indonesia.
In recent months, Indonesia has sought to placate Washington by pledging to boost imports of US goods, offering exclusive tariff cuts and promising deregulation.
It was one of the first countries to dispatch officials to Washington to negotiate trade with the Trump administration.
Coordinating Economic Minister Airlangga Hartarto, currently attending the BRICS summit in Brazil, is expected to travel to the US afterward to sign a memorandum of understanding (MoU) for trade deals worth up to US$34 billion with US business partners.
The agreement would include $15.5 billion in US fuel imports as well as investment commitments involving state-owned enterprises and state-run asset fund Danantara.
Airlangga told reporters that Indonesia already had a team on standby in Washington to deal with the tariff matters.
The ministry did not immediately respond to The Jakarta Post’s request for comment.
Read also: BRICS nations slam Trump tariffs
Trump on Sunday also threatened additional 10 percent tariffs on countries aligning themselves with BRICS after the bloc’s leaders issued a statement condemning attacks on Gaza and Iran, calling for reforms to global institutions and warning that unilateral tariffs hurt global trade.
BRICS, which sees itself as a group representing the interests of emerging economies on the global stage, is in the process of expanding. Indonesia joined in January this year.
“Any country aligning themselves with the Anti-American policies of BRICS, will be charged an additional 10 percent tariff,” Trump said on Truth Social. He did not clarify the “Anti-American policies” referenced in his post.