In light of the current geopolitical and geoeconomic developments, on April 2, 2025, President Donald Trump of the United States (US) announced the imposition of sweeping reciprocal tariffs on most of its trading partners, including Indonesia. The tariffs were calculated by dividing a country’s trade deficit with the US by its exports to the US and then halving the result. This is despite the US’ claim that the calculation is based on the tariffs charged by the trading partner on American products, while also factoring in other trade barriers and currency manipulation. While the US’ unilateral and arbitrary increase of tariffs appears to contradict its commitments under the World Trade Organization (WTO), it is pertinent to assess the potential impacts of such measures and identify possible mitigation strategies.
Please refer to the following link for further details on our client alert regarding The United States’ Reciprocal Tariffs on Indonesia’s Products
#WeSpeakYourLanguage
