Economist Syafruddin Karimi of Andalas University strongly criticizes U.S. President Donald Trump's decision to impose a 32-percent reciprocal tariff on Indonesian exports, calling it damaging and unfair. 

Karimi warned that the move threatens to erode the foundation of Indonesia–U.S. trade relations and could trigger widespread economic and labor consequences at home.

“This high tariff will make it difficult for Indonesian products to compete in the U.S. market. Key sectors such as textiles, footwear, electronics, and rubber − backbones of our non-oil and gas exports − are especially vulnerable,” Karimi said on Tuesday July 8, 2025. “Businesses may be forced to slash margins, cut production, or even halt exports to the U.S.”

He added that these conditions could not only drain Indonesia’s foreign exchange earnings but also increase the risk of mass layoffs in labor-intensive industries.

The economist warned of broader ripple effects on Indonesia’s economy, including the potential slowdown of national growth. “As exports come under pressure, economic growth could stall further. We must realize that relying on global markets requires adequate bargaining power. Without it, we are left vulnerable to external shocks − and in this case, Trump’s tariff policy is anything but fair.”

While acknowledging that the Indonesian government has sent a delegation to Washington, Karimi expressed skepticism about the effectiveness of ongoing negotiations.

“Despite many concessions − some of which are tough on our economic sovereignty − the U.S. has not rolled back the tariff. Trump is not interested in free trade or even fair trade, but in submissive trade,” he said.

Karimi asked the Indonesian government to abandon drawn-out talks and instead push for a straightforward, mutual zero tariff corridor with the U.S.

“Negotiating tariff reductions with Trump is a waste of time. It would be better to finalize our offer for a zero-tariff agreement − that’s fair.”

He also called on Indonesia to take a more active role within the BRICS bloc in defending multilateral trade principles. “With Trump even adding an extra 10 percent tariff threat, it’s clear that dealing with him no longer involves reason or good faith. There’s no sign he will honor agreements,” Karimi said.

U.S. President Donald Trump on Monday announced sweeping new import tariffs targeting several countries in Asia and Africa. The new measures, part of a reciprocal tariff strategy launched on April 2, 2025, include a base tariff of 10 percent on nearly all imports, with additional country-specific tariffs. Indonesia faces one of the steepest rates, set at 32 percent, while Japan, South Korea, Malaysia, and Kazakhstan will each face a 25 percent tariff. South Africa is subject to 30 percent, and Myanmar and Laos to 40 percent.

The announcement has sparked concern over potential global economic slowdown and recession risks in vulnerable economies. Trump defended the move as essential for bringing manufacturing back to the U.S. and funding the new round of tax cuts signed last week. He emphasized, however, that he remains open to negotiations − suggesting continued uncertainty in U.S. trade policy.