Indonesia has vowed to press on with negotiations despite US President Donald Trump’s decision to maintain 32 per cent tariffs on the country, even as it intensifies diplomatic efforts to seek alternative export markets, including fellow members of the Brics bloc.
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The Southeast Asian nation is one of 14 countries notified by Trump via letters on Monday that the unilateral tariffs he announced in April would take effect on August 1.
Trump delayed the levies’ implementation by 90 days to allow time for negotiations, during which time Jakarta sought to meet his demands by pledging to buy up to US$34 billion worth of American goods, easing import procedures and offering cooperation on critical minerals.
Analysts caution, however, that the country likely lacks the leverage needed to move the needle on trade talks with Trump.
Over the past decade, Indonesia has consistently posted trade surpluses with the US – its second-largest export market after China – culminating in a surplus of US$16.84 billion last year.
Jakarta said on Tuesday that it would take up the additional negotiation opportunities mentioned by Trump in his letter.