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32% threatened · 10% active · No FTA

🇮🇩 Indonesia Tariffs 2026

Indonesia was hit with a 32% Section 122 rate — paused to 10%. No US-Indonesia FTA means full tariff exposure on $28 B in annual exports. Here's what importers need to know.

🗓 Apr 2 2025 — 32% announced⏸ Apr 9 2025 — Paused to 10%🤝 Talks ongoing — No deal yet⚠️ Risk — 32% can snap back

Current Tariff Status

32%
Section 122 Rate
Announced Apr 2, 2025
Suspended
10%
Current Active Rate
Since Apr 9, 2025 pause
Active
0%
FTA Rate
No US-Indonesia FTA exists
N/A

How rates stack: The 10% reciprocal tariff adds on top of existing MFN duties. A product with a 12% MFN rate now carries a 22% effective rate. If the 32% rate is reinstated, that same product would jump to 44%.

Section 122 Timeline for Indonesia

Feb 2025
Pre-Section 122 surcharge exposure mapped
Indonesia's $28.7 B in US goods exports flagged as high-tariff-risk.
Apr 2, 2025
IEEPA — 32% reciprocal rate announced
Indonesia assigned a 32% reciprocal tariff, 2nd-highest in ASEAN after Vietnam (46%).
Apr 9, 2025
90-day pause — rate drops to 10%
President Trump paused most country-specific rates. Indonesia: 32% → 10%. Still hurts apparel/footwear stacking on top of MFN.
May 2025
Indonesia trade delegation to Washington
Indonesia offered to reduce tariffs on US beef, soybeans, and wheat. Talks ongoing as of mid-2026.
Jul 8, 2025
90-day pause extended — 10% baseline holds
No bilateral deal reached; 10% baseline continues indefinitely.
Ongoing 2026
Status: 10% baseline, 32% threat remains
If negotiations fail, the full 32% could snap back. Importers should hedge.

Indonesia Import Tariff Rates by Product

Effective rates = MFN + 10% reciprocal baseline. May increase if 32% rate reinstated.

Product CategoryHS Ch.MFN Rate+10% Recip.Effective RateNotes
Apparel & clothing6100–621712–32%10%*22–42%High MFN + 10% baseline; Vietnam alternative common
Footwear6401–64066–37.5%10%*16–47.5%ADD may apply on certain types from Indonesia
Furniture & home goods9401–94030–8.7%10%*10–18.7%Lower MFN; Indonesia major furniture exporter
Palm oil & derivatives15110–10.8%10%*10–20.8%Indonesia #1 global palm oil exporter
Shrimp & seafood03060–15%10%*10–25%CVD orders on warm-water shrimp since 2004
Rubber & tires40110–4%10%*10–14%ADD on off-the-road tires; check CBP orders
Electronics (assembled)8471–85430%10%*10%ITA zero MFN but 10% reciprocal baseline stacks
Copper & minerals7401–74130–3%10%*10–13%Indonesia restricts ore export; processed only
Nickel products7502–75080–3%10%*10–13%Key battery material; downstreaming policy drives exports
Paper & wood products4400–48130–6%10%*10–16%Deforestation compliance may affect some buyers

* 10% reciprocal rate adds to MFN base. ADD/CVD orders add further. Rates current as of May 2026.

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Indonesia vs Vietnam vs China: Tariff Comparison

All three ASEAN/regional manufacturers pay 10% reciprocal baseline. Key differentiator is Section 301 surcharges on China and ADD/CVD orders.

Product🇮🇩 Indonesia🇻🇳 Vietnam🇨🇳 ChinaInsight
Apparel (cotton T-shirts)
6109.10
12% + 10% = 22%12% + 10% = 22%12% + 15–25% §301 = 27–37%ID/VN similar; both beat China
Footwear (leather shoes)
6403.99
8.5% + 10% = 18.5%8.5% + 10% = 18.5%8.5% + 15% §301 = 23.5%Parity with Vietnam
Furniture (wood, upholstered)
9401.61
0% + 10% = 10%0% + 10% = 10%0% + 25% §301 = 25%Big China→Indonesia savings
Electronics (assembled PCB)
8543.70
0% + 10% = 10%0% + 10% = 10%0% + 7.5% §301 = 7.5%China actually lower here (§301 only 7.5% for electronics)
Shrimp (frozen, peeled)
0306.17
0% + 10% + CVD ≈ 15%0% + 10% + ADD ≈ 25%+0% + 10% + ADD highIndonesia CVD lower than Vietnam/China ADD
Nickel (refined)
7502.10
0% + 10% = 10%Not major exporter0% + 0% = 0%China leads on raw nickel but Indonesia for battery-grade

Indonesia's Key Export Industries

👕

Apparel & Textiles

22–42% effective
US imports: $6.5B/yr

Indonesia is the 5th-largest clothing exporter to the US. High MFN rates stack with the 10% baseline. Labor costs remain competitive vs China.

🛋️

Furniture & Home Goods

~10% effective
US imports: $2.8B/yr

Low MFN rates (0–8.7%) mean Indonesia furniture's effective rate is relatively modest. Major Indonesia advantage over Chinese furniture (0% + 25% §301 = 25%).

🦐

Shrimp & Seafood

10–25% effective
US imports: $1.1B/yr

Active CVD orders (since 2004) add to the baseline. Indonesia's CVD rates are generally lower than Vietnam's AD/CVD. Verify current rates with CBP.

🔋

Nickel & Battery Materials

10–13% effective
US imports: $900M/yr

Indonesia holds 40% of global nickel reserves and has banned raw ore exports, pushing processed nickel/battery materials. Key for EV supply chains.

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