Coordinating Minister Airlangga: Trump Tariff May Decrease to 19%

Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, revealed that President Prabowo Subianto played a direct role in negotiating trade tariff revisions in response to U.S. President Donald Trump’s announcement of “Liberation Day” on April 2, 2025. President Prabowo promptly instructed the inter-ministerial negotiation team, led by Airlangga, to send a formal letter to the White House, making Indonesia the first country to respond officially. Airlangga shared these details in a video interview on Real Talk with Uni Lubis, explaining how Indonesia’s proactive response to President Trump’s tariff announcement set the stage for trade discussions. President Prabowo guided the team to develop a tailored trade package, or “menu,” aligning with ongoing trade discussions with the OECD and the Indonesia-EU Comprehensive Economic Partnership Agreement (IEU-CEPA). The aim was to address key trade components important to both parties, particularly focusing on the U.S. trade deficit with Indonesia. Indonesia’s compliance with required standards played a crucial role in reducing export tariffs to the U.S. from 32% to 19%, a decision finalized after meetings with U.S. Trade Representative Jamieson Greer and virtual discussions with other U.S. officials. Airlangga highlighted the importance of a phone conversation between Presidents Prabowo and Trump, ultimately leading to the tariff reduction agreement. This negotiation process, including the personal involvement of both presidents, marked a significant milestone in Indonesia-U.S. trade relations. The outcome of these discussions reflects the commitment of both countries to reach a mutually beneficial trade agreement.

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