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US imposes 10% reciprocal tariff on Indonesian goods

The tariff came from a US investigation conducted under the Section 301 mechanism regarding the issue of forced labour.

A cargo port in Jakarta, Indonesia. (Photo: Getty Images/VNA)
A cargo port in Jakarta, Indonesia. (Photo: Getty Images/VNA)

Jakarta (VNA) - Indonesian Minister of Trade Budi Santoso has recently announced that the US is currently imposing a 10% reciprocal tariff on Indonesian goods, down from the previous rate of 18%, reported the Indonesian news agency Antara.

The tariff came from a US investigation conducted under the Section 301 mechanism regarding the issue of forced labour.

Budi Santoso explained the 10% tariff applied to all countries was valid for 150 days, ending on July 24. Following the period, the US government initiated investigations under Section 301 regarding a number of countries concerning two issues, forced labour and excess production.

Regarding forced labour, the investigation has been completed, with the US imposing different tariff rates on the countries concerned.

The minister said Indonesia was subject to a 10% tariff because the two countries already have an Agreement on Reciprocal Trade (ART). However, the Indonesian Government is continuing negotiations with the US to secure a further reduction, including the possibility of bringing the rate down to zero. According to the official, Jakarta currently has an advantage over some countries that are still negotiating ARTs with the US./.

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