Jakarta. US President Donald Trump has rejected Indonesia’s offer to ease trade tensions -- despite Jakarta’s proposal to boost imports from the United States by $34 billion -- prompting a leading economist to suggest that further negotiations with the Trump administration are pointless.

In addition to the 32 percent tariff specifically imposed on Indonesia, the country is also subject to Trump’s sweeping 10 percent baseline tariff applied to nearly all nations.

Lili Yan Ing, Secretary General of the International Economic Association, said on Tuesday that rather than engaging directly with Trump’s team, Indonesia and other Southeast Asian nations should leverage their economic ties with US companies operating in the region to exert pressure on Washington.

She said it was entirely predictable that the Trump administration would ignore Indonesia’s request, as it has similarly dismissed appeals from ASEAN and other countries since the tariffs were introduced in April.

“As expected, Trump will not listen to Indonesia, ASEAN, or anyone else. Engaging directly with him is a dead end,” she said in Jakarta.

“To safeguard its interests, ASEAN must work through US companies that have invested deeply in the region and reaped trillions of dollars in returns. These firms -- with substantial economic stakes in Southeast Asia -- are ASEAN’s most effective channel to influence Washington and ensure its voice is heard.”

Trump’s Tariff Obsession Will Backfire
Lili warned that Trump’s protectionist policies may deliver short-term political wins, but they risk long-term damage to the US economy. While the tariffs may narrow the trade deficit in the short run by dampening growth and weakening the dollar, the broader costs could be severe.

She said investor confidence in the Trump administration is already eroding, raising the cost of US debt and shifting the financial burden onto future generations.

She argued that the administration’s tariff strategy disrupts global supply chains, invites retaliation, and ultimately undermines the very foundations of US economic power.

Instead of making America great again, these policies are weakening US competitiveness and raising costs for businesses and consumers alike, she said.

“Trump’s arrogance and disregard for economic evidence have long been apparent. What is more troubling, however, is the sheer recklessness of his tariff obsession,” Lili said.  “Few expected that a US president would double down on such a blunt instrument -- one that has repeatedly failed to deliver its promised outcomes and only deepens global uncertainty.”

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