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View all search resultsIndonesia seeks better US tariff terms after 10% forced-labor duty
Business groups warned that export-oriented manufacturers are likely to bear the brunt of the new tariff regime, particularly those heavily dependent on the US market.
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Two tug boats pull a cargo ship on Jan. 20 carrying four containers holding hazardous e-waste to the United States at Batu Ampar Port in Batam, Riau Islands. The port previously held 914 containers holding hazardous and toxic containers that had to be re-exported to its country of origin, the United States. (Courtesy of Batam Customs and Excise Office/-)
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ndonesia is seeking to secure more favorable tariff terms from the United States after Washington imposed a 10 percent duty on Indonesian imports over alleged forced-labor violations on Friday, with the country also facing the risk of additional tariffs linked to claims of heavy state subsidies that result in structural overcapacity.
“The government is actively continuing consultations with the US Trade Representative (USTR) to obtain the best and most competitive tariff,” Haryo Limanseto, spokesperson for the Office of Coordinating Economy Minister, told The Jakarta Post on Friday.
“We welcomed the USTR’s recognition that Indonesia has actively committed to preventing and combating forced labor in global supply chains and has a regulatory framework in place to address the issue.”
The new tariff is being brought under Section 301 of the Trade Act of 1974, one of the trade tools US President Donald Trump's administration had wielded after the US Supreme Court in February struck down his sweeping “reciprocal” tariffs imposed last year.
The move came as the temporary 10 percent global tariff imposed under Section 122 of the Trade Act of 1974 reached its 150-day limit and expired on the same day.
Under Section 301 basis, US imposed a 12.5 percent tariff on imports from Australia, China, including Hong Kong, Singapore and South Korea, alleging the countries failed to prevent goods made with forced labor from entering the American market.
Meanwhile, Indonesia, alongside Malaysia, Taiwan and India, to face additional tariffs of 10 percent.
