How Indonesia Responds to New 10 Pct US Import Tariff

8 hours ago 4

TEMPO.CO, Jakarta - The United States government has imposed a new 10 percent additional import tariff on 60 trading partner nations, including Indonesia, effective July 24, 2026, amid an ongoing trade investigation by Washington. The Indonesian government, meanwhile, continues to lobby Washington to secure more competitive tariff rates for its exports.

Coordinating Ministry for Economic Affairs spokesperson Haryo Limanseto stated that the Office of the United States Trade Representative (USTR) levied the new tariffs following an investigation under Section 301.

"Indonesia is among the countries subject to an additional 10 percent tariff under Section 301, alongside 16 other nations and regions, such as Malaysia, India, Mexico, Canada, and the United Kingdom," Haryo said in an official statement released on Sunday, July 26, 2026.

Prior to the decision, the USTR launched a Section 301 probe into 60 countries across 16 economic regions under the Trade Act of 1974. For Indonesia, the inquiry focuses on two issues: manufacturing overcapacity and restrictions on goods produced using forced labor.

Addressing allegations surrounding forced labor, Haryo noted that the government acknowledges the USTR’s recognition of Indonesia’s active commitment and regulatory framework to prevent and eliminate forced labor within global supply chains.

Furthermore, based on information from US officials, the findings of the investigation regarding excess capacity are expected to be published shortly. "We are awaiting the official announcement of the investigation results and remain hopeful for favorable tariff terms for Indonesia," Haryo said.

Additionally, the government hopes that products previously granted exemptions under the Agreement on Reciprocal Trade (ART) signed between Indonesia and the US will remain protected. "The government is actively consulting with the USTR to secure the best and most competitive tariffs possible."

Section 301 empowers the USTR to investigate and penalize foreign governments found engaging in trade practices deemed unfair to the United States. The measure comes after the US Supreme Court struck down the legal foundation for the previously enforced reciprocal tariff policy.

The USTR originally announced the trade investigation on March 11, 2026. Targeted jurisdictions include China, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, South Korea, Vietnam, Taiwan, Bangladesh, Mexico, Japan, India, and the European Union.

Following the inquiry, the US government announced new tariffs ranging from 10 to 12.5 percent on imports from 60 major trading partners. Washington adopted the policy after determining that these nations had failed to take sufficiently firm action against imports linked to forced labor.

The announcement came a day before the expiration of the temporary 10 percent global tariff enacted by President Donald Trump in February. "President Trump recognizes that decades of moral suasion have not eradicated forced labor from global supply chains," US Trade Representative Jamieson Greer said, as quoted by state news agency Antara.

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