Trump's Tariff Policy: Indonesia and Malaysia Seek Unified ASEAN Response

17 hours ago 3

TEMPO.CO, Jakarta —The Indonesian and Malaysian governments are discussing United States President Donald Trump's reciprocal tariffs. Susiwijono Moegiarso, the Secretary of the Coordinating Ministry for the Economy, stated that communication with neighboring countries is necessary, considering that 10 Southeast Asian countries, or ASEAN, are affected by the new U.S. policy.

"Indonesia has communicated with Malaysia as the current Chair of ASEAN to take joint steps," he said in a press release on Thursday, April 3, 2025.

Trump announced the import tariff policy on Wednesday, April 2. He imposed a minimum tariff of 10 percent on all products entering the U.S. from all countries.

The U.S. will impose a 32 percent tariff on imported commodities from Indonesia, ranking eighth in receiving the highest tariff. Trump claims the additional reciprocal tariffs, now set higher, are a response to some trading partner countries, including Indonesia.

According to Susiwijono, several ASEAN member countries received relatively high new reciprocal tariffs. For example, Cambodia received 49 percent, Laos 48 percent, Vietnam 46 percent, and Myanmar 44 percent. Other Southeast Asian countries, such as Thailand, received a tariff of 36 percent, while Malaysia and Brunei received 24 percent each, and the Philippines received 17 percent. Only Singapore received a 10 percent tariff.

Trump accused several countries, including Indonesia, of unfairly taking advantage of the U.S. in international trade. India, Brazil, and countries in the European Union also faced the same allegation.

In an official statement, as quoted from the official White House website on April 2, 2025, Trump revealed his reasons for claiming that other countries take advantage of the U.S.

According to Trump, Indonesia and Brazil were identified as countries that impose higher import duties than the U.S. on ethanol commodities. In addition, Trump highlighted Indonesia's Domestic Component Level (TKDN) policy, import licensing, and export revenue from natural resources (DHE SDA).

According to the White House fact sheet, Indonesia maintains a local content requirement across multiple sectors and a complex import licensing regime. Indonesia required natural resource companies to retain export earnings domestically for transactions of US$250,000 or more.

Sultan Abdurrahman contributed to the writing of this article.

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