Heaptalk, Jakarta — Indonesia’s furniture exports are reportedly at risk following the United States’ announcement of plans to impose a 25% tariff on wood products. This high tariff is feared to hinder the competitiveness of Indonesian furniture products in the US market, as the price of these products will rise, making them less competitive compared to products from other countries that are not subject to similar tariffs.
Abdul Sobur, the Chairman of the Indonesian Furniture and Craft Industry Association (HIMKI), highlighted the significant impact of this policy. The United States is a key export market for Indonesia’s furniture industry, accounting for 53% of the market share. “If the US implements this tariff on April 2, 2025 (upcoming), especially for wood, furniture, and its derivatives, there will be a contraction in this industry,” Sobur said during a HIMKI press conference in Jakarta on Tuesday (03/25).
To anticipate this, HIMKI urges the Indonesian government to take decisive diplomatic steps to ensure that national furniture products can still enter the US market without tariff barriers. “If possible, we should strive for these products to enter without customs duties, as a form of fairer trade cooperation,” he added.
Sobur explained that the threat of this tariff originated from an executive order signed by President Trump on March 1, 2025. The document instructs the U.S. Department of Commerce to investigate imports of wood-based products under Section 232, which was previously used to impose tariffs on steel and aluminum imports.
This investigation encompasses a range of products, including raw wood and lumber, as well as derivative products such as furniture, paper, and cabinets. If the US determines that wood imports from Indonesia pose a threat to their national security, the 25% tariff could be immediately implemented. He further explained that if the 25% tariff is applied, the price of Indonesian products in the US will increase drastically, which would undoubtedly reduce competitiveness in that market.
However, there is a possibility of product exclusions. The US may provide exemptions for certain products, primarily if they utilize raw materials from the US or are deemed to have strategic value. However, this process is not easy and requires intense lobbying. “This policy could push the US to strengthen its local products or shift imports to countries not subject to high tariffs, potentially altering the dynamics of global trade,” he explained.
To protect the Indonesia’s furniture exports, HIMKI is currently collaborating with various international organizations, including NGOs in the US and the European Union. This move aims to strengthen campaigns against the tariff policy, which is seen as detrimental to Indonesia. HIMKI is also continuing to coordinate with the government and industry players to ensure that mitigation strategies can be implemented before the tariff takes effect.
