Trump reinstates reciprocal tariffs on 14 nations, including Indonesia, starting August
U.S. President Donald Trump has announced the reimposition of reciprocal import tariffs on 14 countries, including Indonesia, effective Friday, August 1, 2025.
The announcement, made via a letter posted on Trump’s Truth Social account and later confirmed by the White House, underscores the president’s continuing focus on correcting what he describes as “unfair trade imbalances.”
According to the letter, Indonesia will be subject to a 32 percent reciprocal import tariff, among the higher end of the tariff spectrum. Other countries included in the new policy are Japan, South Korea, Malaysia, Kazakhstan, South Africa, Myanmar, Bosnia and Herzegovina, Tunisia, Bangladesh, Serbia, Cambodia, and Thailand.
Goods from Japan, South Korea, Malaysia, Kazakhstan, and Tunisia will face a 25 percent tariff, while imports from South Africa and Bosnia will be taxed at 30 percent. Bangladesh and Serbia will be hit with 35 percent, and Cambodia and Thailand with 36 percent. Myanmar and Laos will see the highest increase, with tariffs rising to 40 percent.
The letter also stated that the new tariffs may be reviewed depending on how each country engages with the United States moving forward. While the measures were originally scheduled to take effect on July 9, Trump signed an executive order on July 7 pushing the effective date to August 1, citing additional input from senior officials.
“These decisions are informed by recommendations from high-level advisers,” the letter noted. The tariffs, however, are separate from sector-specific duties on major product categories. It also warned that goods rerouted through other countries in an attempt to circumvent tariffs will still be subject to the imposed rates.
According to the document, the renewed tariffs are necessary to address persistent trade deficits between the U.S. and the listed countries. Trump has long pointed to trade imbalances as evidence that the U.S. has been exploited by foreign trade partners. Experts have pushed back on this narrative, arguing that trade deficits are not inherently harmful and that trying to eliminate them may not be economically beneficial.
For instance, the U.S. posted a US$68.5 billion (Rp1,112 trillion) goods deficit with Japan, US$66 billion with South Korea, and US$579.3 million with Myanmar, according to data from the U.S. Trade Representative. While Japan and South Korea mainly export cars and electronics to the U.S., Kazakhstan sends crude oil and alloys, and Malaysia exports electronic components.
In a preemptive statement included in the letter, Trump warned the affected countries against retaliatory tariffs. “If for any reason you decide to raise tariffs, the amount you raise them by will be added on top of the 25 percent we are imposing,” it said.
The letter suggested that removing existing tariff and non-tariff barriers could lead to a review and potential reduction of the new tariffs. “These rates may go up or down depending on our relationship with your country,” it continued. “You will never be disappointed with the United States.”
Trump initially imposed a three-month moratorium on the reciprocal tariffs in April, claiming that his administration could secure up to 90 trade deals in 90 days. As of early July, however, only a few frameworks had been reached − with the U.K., Vietnam, and a preliminary agreement with China. Under the Vietnam deal, the country agreed to a 20 percent tariff on its exports to the U.S. and a 40 percent transshipping fee, in exchange for tariff-free access to American markets.
Although a federal district court struck down the reciprocal tariff policy in May, ruling that Trump lacked the legal authority to impose such broad-based tariffs under emergency powers, the administration has appealed the decision. The higher court has allowed the tariffs to remain in effect during the appeals process.
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