The United States has agreed to delay the implementation of a 32 percent reciprocal import tariff on Indonesian products, following intense economic diplomacy led by Coordinating Minister for the Economy Airlangga Hartarto.

The announcement comes after weeks of high-level negotiations in Washington, D.C., involving Airlangga and top U.S. officials, including Secretary of Commerce Howard Lutnick and United States Trade Representative (USTR) Jamieson Greer.

The negotiations were triggered by a U.S. policy set to impose a significant tariff hike starting August 1, 2025, a move widely seen as part of President Donald Trump’s broader trade agenda.

Airlangga confirmed that the additional 10 percent tariff initially planned as a response to Indonesia’s entry into the BRICS group had been canceled. More importantly, the 32 percent tariff has now been “paused” to allow for further negotiation.

"The additional 10 percent (due to BRICS membership) will not be applied. Secondly, the implementation of the 32 percent tariff is postponed. This is a pause to finalize the ongoing negotiation," Airlangga told a press conference in Brussels, where Airlangga continued diplomatic engagements, as quoted on Sunday, July 13, 2025.

Airlangga added that both sides have agreed to a three-week negotiation window to fine-tune proposals and seek mutually beneficial terms. “This is a continuation of what Indonesia has proposed, and we expect finalization in the coming weeks,” he said.

The development was welcomed by international law expert Hikmahanto Juwana of the University of Indonesia, who praised the outcome as a major diplomatic achievement.

“This is a remarkable outcome by the Coordinating Minister for the Economy. The primary goal of this mission was to persuade the U.S. to lower or delay the tariffs, and that has been accomplished,” Hikmahanto said in a written statement on Sunday.

He also noted that Indonesia's success could set a precedent for other countries affected by Trump-era trade measures.

“Indonesia is the first country to come forward and negotiate a reduction in the 32 percent tariff. This success could potentially influence how similar cases are handled for other nations,” he said.

The delay also coincides with a series of business agreements aimed at deepening economic ties between the two nations. During Airlangga’s visit, several memoranda of understanding (MoUs) were signed between Indonesian and U.S. companies in the agriculture and energy sectors.

These include MoUs between Indonesian wheat producers and U.S. Wheat Associates, Sorini Agro Asia Corporindo and Cargill for corn procurement, and FKS Group with Zen-Noh Grain Corp for soybean and soybean meal imports. Additionally, PT Kilang Pertamina Internasional inked agreements with energy giants such as ExxonMobil, KDT Global Resource, and Chevron.

“These agreements demonstrate our commitment to expanding commercial cooperation and increasing investment flows between Indonesia and the United States,” Airlangga said.