Jakarta. Indonesia said Saturday that the newly signed US trade deal had not entered into force after the US Supreme Court ruled the blanket tariffs as illegal.

The court has stated that US President Donald Trump cannot slap the sky-high tariffs under a 1977 law designed to address national emergencies. Shortly after the defeat, Trump quickly imposed a new 10% global tariff — “effective almost immediately”. All this occurred in less than a day after Jakarta and the Trump government sealed a deal that set the tariffs on Indonesian goods at 19%, with some exceptions. 

As questions rise over the accord’s fate, Haryo Limanseto — a spokesman at the Coordinating Ministry for Economic Affairs — said that Jakarta would keep an eye on the situation. The document is still subject to lawmaking processes before the terms can officially come into effect.

“The continuation of the reciprocal trade agreement remains dependent on the decisions of both sides. This means that Indonesia still needs to ratify this pact, and this deal is not yet effective immediately," Haryo said. 

The US needs to follow the same regulatory process, given the latest developments, according to Haryo. He went on to say that the two governments will engage in “further talks regarding any decisions made”.

“Going forward, Indonesia will continue to prioritize national interests and needs,” Haryo said.

Read More: Indonesia Swallows US Poison Pill in New Trade Deal as Trump Isolates China

When Trump launched his tariff salvo in April 2025, the rate hanging over Indonesia stood at 32%. Washington agreed to drop it to 19% in exchange for major tariff eliminations on US goods. But the poison pill clause on the 45-page document did not escape the eyes of analysts, who warned that Indonesia might have swallowed a poison pill. Trump has threatened to terminate the deal if Indonesia enters into a new trade pact with “a country that jeopardizes the US essential interests” — a move widely perceived as Washington’s attempt to weaken China’s influence.

With this poison pill clause included, Bhima Yudhistira — who helms the economic think-tank Celios — said that the Supreme Court ruling might be a win for Indonesia.

“Our lawmakers don’t have to ratify this trade agreement. We can escape from the US’ trap, including opening ourselves to partnerships with other countries. The contents of this trade deal really jeopardize our national economic agenda,” Bhima said.

The ruling has opened up the possibility of Indonesian companies getting refunds from the tariff hikes, according to the economist.

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