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Indonesia Responds to U.S. 47% Textile Import Tariff, Seeks Fair Trade Resolution

"The textile import policy raises the total tariff to 10% plus an additional 10%, or 37% plus 10%, effectively pushing rates up to 47%,

Haris Sunandar by Haris Sunandar
April 23, 2025
in Feature News, News
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textile import
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Heaptalk, Jakarta — The US government has announced a significant increase in import tariffs on Indonesian textiles, with rates reaching up to 47%. The decision, confirmed by US President Donald Trump, is expected to impact Indonesia’s textile and garment exports to the American market.

Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, disclosed that the additional 10% textile import duty imposed by the US directly affects Indonesian textile and garment products. This policy builds upon the tariff measures initially introduced during the Trump administration, which continue to shape trade relations between the two nations.

Currently, Indonesian textile and garment products face base tariffs ranging from 10% to 37%, depending on product type and classification. With the additional 10% levy, the total tariffs could surge to as high as 47%.

“The new policy raises the total tariff to 10% plus an additional 10%, or 37% plus 10%, effectively pushing rates up to 47%,” Airlangga explained during a press briefing following his visit to Washington, DC.

He emphasized that the increased textile tariffs would significantly weaken the competitiveness of Indonesian exports in the US market. Exporters are expected to bear additional costs, as American buyers have reportedly requested shared responsibility for the tariff expenses rather than absorbing them entirely.

During his visit, Airlangga held high-level discussions with US officials, including a key meeting with US Secretary of Commerce Howard Lutnick. Both parties explored diplomatic solutions to resolve trade disputes, particularly concerning the newly imposed tariffs.

Airlangga noted that the discussions resulted in a mutual commitment to continue negotiations over the next 60 days, with one to three rounds of talks aimed at resolving the issue. “We hope that within 60 days, both nations can establish a framework for a formal agreement,” he stated.

The Indonesian government remains optimistic about finding a balanced solution through further negotiations, ensuring fair trade practices while safeguarding the interests of local exporters.

Tags: textile tariff

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