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Indonesia Told Not to Rush into Tariff Talks with Trump Team

Rama Sukarta
April 10, 2025 | 11:45 pm
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President Donald Trump talks with reporters as he signs executive orders in the Oval Office at the White House, Thursday, Jan. 30, 2025, in Washington. (AP Photo/Evan Vucci)
President Donald Trump talks with reporters as he signs executive orders in the Oval Office at the White House, Thursday, Jan. 30, 2025, in Washington. (AP Photo/Evan Vucci)

Jakarta. Indonesia should hold off on entering negotiations with the United States over the recently announced 32 percent “reciprocal” tariffs, an international trade expert said on Thursday, warning that the US itself may not be fully prepared for talks.

The on-again, off-again sweeping tariff hikes -- announced by US President Donald Trump -- have sent shockwaves through global markets, triggering losses and prompting widespread concern over the long-term impact on international trade.

Iman Pambagyo, former Director General of International Trade Negotiations at Indonesia’s Trade Ministry, said the current circumstances suggest the US administration is still assessing the implications of its own policy.

“I don’t think now is the right time to sit down at the negotiation table with the US, which doesn’t appear ready for serious bilateral talks,” Iman said. “There were even reports that Vietnam faced pressure when it requested negotiations -- so it’s best for us to stay calm for now.”

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Iman described the US tariffs as transactional and politically driven, rather than strategic trade policy, and cautioned against reacting with urgency or panic.

The former Indonesian Ambassador to the World Trade Organization also pointed out that President Trump has temporarily paused the tariff hikes for 90 days following global backlash and growing domestic concerns. The Trump administration now appears to be narrowing its focus to a tariff confrontation with China, rather than pursuing a broad trade war with most countries in the world.

“Even on the US side, there seems to be uncertainty. They need time to assess the impact on their own economy,” Iman said. “Analysts are already calling this a self-inflicted wound.”

Instead of rushing into talks, Iman advised the Indonesian government to recalibrate its approach -- both in terms of messaging and long-term trade strategy -- amid what he described as an unprecedented shift in global trade dynamics.

“Indonesia should assure the US that we understand their interests and are willing to increase imports from them,” he said. “For example, we could consider rerouting some of our imports from other countries to the US.”

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