Indonesia has announced new trade benefits for the U.S., including lower taxes on electronics and steel, ahead of important trade talks with Washington.
The Southeast Asian country is preparing for discussions about President Donald Trump’s 32% tariffs, which are set to start on Wednesday.
In an effort to ease the impact of these tariffs, Indonesia will send a high-level delegation to the U.S. next week. They plan to purchase U.S. liquefied petroleum gas, natural gas, and soybeans, as part of the talks.
Indonesia is also considering reducing import duties on U.S. steel, mining products, and health equipment to as low as 0-5%, down from the current 5-10%. Taxes on electronics, including mobile phones and laptops, will also be lowered from 2.5% to just 0.5%.
Additionally, Indonesia is looking to replace some of its import quotas, such as those on rice, corn, and beef, and may replace current local content rules with incentives. There’s even talk about potential collaboration with the U.S. on critical minerals.
Indonesia has a significant trade surplus with the U.S., reaching $16.8 billion last year, with electronics, apparel, and footwear as key exports.
This move by Indonesia aims to create more flexibility in trade and make the country a competitive alternative to places like Vietnam, Bangladesh, Thailand, and China, which have been impacted by U.S. tariffs.
This trade shift could change how countries like Indonesia approach their relationships with Washington, especially in light of global tariff changes, as reported by Reuters.
Credit: Reuters
https://www.reuters.com/markets/indonesia-announces-trade-concessions-us-ahead-talks-2025-04-08