Indonesia Aims for More Competitive US Tariffs than Vietnam’s 20% Deal
Jakarta. The Indonesian government is seeking lower import tariffs from the United States than those recently granted to Vietnam, in an effort to improve the competitiveness of Indonesian products in the US market.
Vietnam secured a new tariff agreement with the US this week, with duties set at 20 percent, down from an initial 46 percent proposed by former President Donald Trump in April. Trump announced the revised deal on Truth Social on Thursday, saying it was the result of direct talks with Vietnam’s top leader, To Lam, ahead of a July 9 deadline.
Indonesia, meanwhile, is still in the process of negotiating a similar deal with the US, aiming to reduce tariffs currently set at 32 percent -- excluding the 10 percent baseline tariff.
“We hope to achieve a rate lower than Vietnam’s, which stands between 20 and 40 percent,” said Coordinating Minister for Economic Affairs Airlangga Hartarto during a press conference in Jakarta on Thursday.
The proposed tariff reduction is part of Indonesia’s broader effort to secure better access for its exports to the US and strengthen its trade position amid intensifying global competition.
The Indonesian government has proposed boosting imports from the United States by up to $34 billion as part of ongoing negotiations, Airlannga said.
This includes the purchase of US energy products with a potential value reaching $15.5 billion.
“We’re offering to purchase goods worth more than what the US trade deficit is -- $34 billion in total, compared to the $19 billion deficit,” he said.
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