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Indonesia seeks exemption for palm oil under new US tariff

The senior economy minister says Jakarta has submitted a request to Washington that Indonesian palm oil be exempted from Trump's latest tariff regime, even as the country remains subject to a separate US probe into alleged excess manufacturing capacity.

Ruth Dea Juwita and Maudey Khalisha (The Jakarta Post)
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Tue, July 28, 2026 Published on Jul. 28, 2026 Published on 2026-07-28T13:11:31+07:00

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Workers unload fresh fruit bunches (FFB) from a truck on Oct. 29, 2025, at a collection point in Palangka Raya, Central Kalimantan. Workers unload fresh fruit bunches (FFB) from a truck on Oct. 29, 2025, at a collection point in Palangka Raya, Central Kalimantan. (Antara/Auliya Rahman)

I

ndonesia is seeking an exemption for its palm oil exports from the United States’ new tariffs, imposed under a Section 301 probe into alleged forced labor violations, according to the senior economy minister.

“We are asking for palm oil to be exempted. We are still waiting because the [investigation] is still ongoing [in Washington],” Coordinating Economy Minister Airlangga Hartarto told reporters on Monday, adding that Jakarta’s request was still under review by US authorities.

Indonesia is the world’s largest producer and exporter of crude palm oil (CPO).

Airlangga added that the government had requested zero tariffs for several other natural resource commodities, without specifying which products.

Read also: Indonesia seeks better US tariff terms after 10% forced-labor duty

US President Donald Trump has brought the new tariffs, ranging from 10 to 12.5 percent, under Section 301 of the Trade Act of 1974, one of the tools he wielded after the Supreme Court struck down his sweeping “reciprocal” tariffs of 2025 in February.

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The US leader imposed his latest tariffs on July 24, the same day that the temporary, 150-day global 10 percent tariffs he imposed under Section 122 of the 1974 Trade Act expired.

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