On April 2nd, 2025, the Trump Administration announced ‘reciprocal tariffs,’ imposing a 32% rate on Indonesian exports. Following global backlash, the U.S. revised its stance, reducing tariffs to 10% for most countries (excluding China) and introducing a 90-day pause to allow for negotiations.

Indonesia has responded by pursuing dialogue with the U.S. and coordinating with ASEAN partners. Domestically, President Prabowo has proposed easing import quotas and local content rules, supported by a newly formed Deregulation Task Force to improve trade policy. While the pause offers a brief reprieve, uncertainty remains over long-term trade relations.

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