Arya News - Indonesia is among 14 economies facing a proposed 10 per cent tariff linked to a US investigation into alleged forced-labour concerns.
JAKARTA – Indonesia is bracing for potential new United States tariffs as Washington prepares to impose fresh levies on dozens of countries before its temporary 10 percent global tariff expires this week.
“The [US] investigation has been conducted [on Section 301] and Indonesia has provided its explanation and clarifications,” spokesman for the Office of the Coordinating Economy Minister, Haryo Limanseto, told The Jakarta Post on Wednesday.
“At present, the countries concerned are waiting for the office of the US Trade Representative’s [USTR] mechanism on the tariffs and the final results of the Section 301 investigation,” he continued.
The temporary 10 percent global duty was imposed by US President Donald Trump this year after a swath of his tariffs were struck down by the Supreme Court last February, but this levy is set to lapse on Friday.
Washington has been working on a new tariff strategy and seeking alternative legal authorities to maintain tariff pressure following the Supreme Court’s decision.
In early June, the USTR proposed more tariffs of up to 12.5 percent on imports from 60 economies, brought under Section 301 of the Trade Act of 1974, with duties being imposed in response to alleged forced labor issues and unfair trade practices.
“We expect to see some action soon. I can’t really specify a timeline right now,” Greer told CNBC, when asked about a Financial Times report that the administration was preparing to announce new tariffs on dozens of countries.
The FT report said the most immediate new duties were expected to be broadly in line with the 10 percent tariffs currently in place, although the administration was pursuing other investigations that could provide legal grounds for higher tariffs.
Brazil became the first country to be targeted under the strategy, after it was hit with 25 percent duties on its furniture, ethanol, machinery, footwear, sugar and other goods last week,
On Monday, Washington unveiled a 50-percent levy on many Canadian products to take effect in 30 days, citing alleged trade discrimination against multiple US industries.
Canadian Prime Minister Mark Carney said on Tuesday that he was looking at “all options,” adding that he and Trump had agreed to “intensify discussions” in the coming weeks on a possible deal.
On Tuesday, Trump also announced a new 100 percent sector-specific tariff on imported generic drugs to take effect from August 2028, with that level rising to 200 percent in 2029.
Jakarta’s responses
Indonesia is among 14 economies facing a proposed 10 percent tariff linked to a US investigation into alleged forced-labor concerns.
As a defense, Jakarta stated that it has strengthened its safeguards against forced-labor imports through Trade Minister Regulation No. 9/2026, issued earlier this year, which seeks to ensure imported goods are not produced using forced labor.
In June, the government estimated the final tariff burden on Indonesian goods exported to the US could reach about 18 percent, under a “stacking” mechanism that combines multiple levies.
The total would include an initial 10 percent tariff tied to forced-labor concerns, expected to take effect first, followed weeks later by an additional component linked to structural overcapacity, according to Susiwijono Moegiarso, secretary to the coordinating economy minister.
On the other hand, the government sees some benefits from the negotiations despite the tariff threat, including US backing for its accession process to the Organisation for Economic Co-operation and Development (OECD), a grouping of mostly advanced economies.
“Several commitments that have been agreed are seen as supporting Indonesia’s accession process to the OECD,” Susiwijono said in a statement on June 8.
The final rate would still depend on product exemptions negotiated with Washington and the outcome of ongoing processes in the US, he said. Countries affected by the measures, including Indonesia, will still be allowed to submit comments and present arguments before full implementation.
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