Trump’s “Reciprocal Tariffs”: Global Trade Shock and Implications for Indonesia
The April 2025 “Reciprocal Tariff” policy introduced by the U.S. imposes sweeping import duties, including a 32% tariff on Indonesian goods, as part of an aggressive strategy to address trade imbalances. This unprecedented move significantly impacts key Indonesian export sectors such as apparel, footwear, electronics, and palm oil—threatening jobs, shrinking trade volumes, and creating economic strain.
Indonesia now faces both direct losses from reduced U.S. market access and indirect effects from China’s slowdown, as global supply chains adjust. In response, Indonesia is pursuing diplomatic channels, exploring export diversification, and preparing support measures to protect its economy and maintain financial stability amid shifting global trade dynamics.