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THE APPLICATION OF US TARIFFS AS OF AUGUST 1 DID NOT APPLY TO RI: AIRLANGGA

THE COORDINATING Minister for the Economy, Airlangga Hartarto, stressed that the previously planned US import tariffs, which were set to take effect on August 1, 2025, no longer apply to Indonesia (RI).

This is because Indonesia reached a new agreement with the US government that replaces the original tariff policy announced by former US President Donald Trump. However, implementation of the new agreement is pending an official announcement through a joint statement by the two countries.

Indonesia has been dealing with the United States for a long time. Several countries that have reached an agreement with the US are no longer subject to the tariffs as of August 1, 2025. The tariffs apply to countries that received a letter from the US. (07/19), 2025.

As you know, President Trump previously proposed applying reciprocal tariffs of 32% to all Indonesian products, which were scheduled to take effect on August 1, 2025. However, negotiations between the two countries produced a new tariff of 19 percent and an agreement on several trade commitments.

This agreement includes a commitment to purchase US$15 billion worth of energy, US$4.5 billion worth of agricultural products, and 50 Boeing aircraft, most of which are Boeing 777 models, from the US.

According to Airlangga, the implementation of the new agreement can be faster or slower. However, he said that the basic tariff of 10% imposed by the US on all trading partners remains in force.

“This will now be determined, and then we will wait for the joint statement and further announcements. It can be faster or slower, but the 10% tariff remains,” he concluded. [antaranews]