The United States began imposing new import tariffs of up to 12.5 percent on Friday, July 24, 2026, on goods from around 60 trading partners, including Japan, South Korea, and the European Union.
The policy was announced ahead of the expiration of the temporary 10 percent global tariff previously implemented by the U.S. government.
The Donald Trump administration said the measure was introduced because many trading partners were deemed to have failed to take sufficient steps to prevent goods produced through forced labor from entering global supply chains.
Washington has banned imports of goods made with forced labor for nearly a century and is now encouraging other countries to adopt similar standards.
The question is: Will Indonesia be affected?
Why Is the US Introducing the New Tariffs?
The new tariffs follow a U.S. Supreme Court decision that struck down the reciprocal tariff scheme previously introduced by President Trump under emergency powers.
In response, the administration has turned to Section 301 of the Trade Act of 1974, which is considered to provide a stronger legal basis for imposing tariffs on countries accused of engaging in unfair trade practices.
For decades, diplomatic efforts have been viewed as insufficient to eliminate forced labor practices from global supply chains.
As a result, the U.S. government has chosen to use tariffs as a form of trade pressure.
Will Indonesia Be Affected?
Yes, but Indonesia will not be subject to the 12.5 percent tariff.
According to information from the Office of the United States Trade Representative (USTR), Indonesia is among the 60 economies being reviewed over concerns that oversight of goods produced through forced labor has not been fully effective.
However, Indonesia has been placed in the category proposed to receive an additional 10 percent tariff, rather than the 12.5 percent rate.
This is because the country has already implemented—or is in the process of developing—measures to address forced labor issues, qualifying it for the lower tariff rate.
Potential Impact on Indonesia
1. Export Costs to the US Could Increase
The additional tariff could make Indonesian products entering the U.S. market more expensive.
This could reduce the competitiveness of several Indonesian export commodities compared with products from countries receiving lower tariff rates or exemptions.
2. Businesses May Need to Adjust Their Export Strategies
Indonesian exporters may need to reassess their business strategies, including improving production cost efficiency and diversifying export markets if the policy is fully implemented.
3. Global Supply Chains Could Also Be Affected
Because the policy targets around 60 U.S. trading partners, changes in international trade flows could disrupt global supply chains.
The impact could also be felt by companies that rely on imported raw materials or export markets in countries affected by the new tariffs.
Although Indonesia is not among the countries facing the highest 12.5 percent tariff, the new U.S. policy still warrants close attention because it has the potential to affect trade flows and Indonesian exports to the American market.
Going forward, the implementation of the policy, as well as the progress of negotiations between Indonesia and the United States, will be key factors in determining its impact on Indonesian businesses.***
