Indonesia Seeks Lower U.S. Tariffs After 10% Duty Imposed

Indonesia is actively pursuing reduced import tariffs from the United States, currently facing a 10 percent duty that is set to expire on July 24, 2026. Trade Minister Budi Santoso explained that this tariff is part of a broader U.S. policy affecting numerous countries, implemented after a Supreme Court decision on reciprocal tariffs.

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The U.S. government has imposed a 10 percent tariff on all countries for 150 days.

The U.S. Trade Representative's Office (USTR) initiated a Section 301 investigation on March 11, 2026, examining about 60 nations for issues including forced labor and manufacturing market access. Findings released on June 2, 2026, led to tariffs of either 10 percent or 12.5 percent.

Indonesia secured the lower 10 percent rate, distinguishing itself from 46 other countries facing the higher 12.5 percent tariff. Minister Budi attributed this to Indonesia's robust regulations prohibiting forced labor and its existing trade agreements with the U.S.

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The situation remains dynamic, and the Indonesian government continues to engage with the United States in pursuit of more favorable tariff rates.

Despite the current tariff, Indonesia's exports to the U.S. have shown resilience, with a trade surplus of $18.11 billion in 2025. The government remains engaged in discussions with U.S. authorities, aiming for more favorable tariff rates, including a potential zero-percent rate for specific export commodities.

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Even during the reciprocal tariff discussions, our exports to the United States continued to increase.