NEWSLETTER

Sign up to read weekly email newsletter

Finance, Market, & Banking News

informabank.com
subscribe
Search
  • Home
  • Business Decisions
    Business DecisionsShow More
    The Impact of Autonomous Expenditure on Economic Growth.
    Deferred Fund Management Strategy
    Impact of Liquidity Trap
    Affectation- Linked Bonds
    Introduction and Definition of Swedish Rounding
  • Investment Asset
    Investment AssetShow More
    Mastering Fair Stock Price Calculation: A Smart Guide to Avoid Investment Mistakes
    Is it true that investment companies that fail to make a profit are caused by losses?
    Getting to Know Anatocism: Its Impact on Society
    Factors that Influence the USD Value in Major Pairs
    The Power of Coverdale Training Program.
  • Financial System
    Financial SystemShow More
    10 Items You Should Avoid Buying When the Economy Is Weak: Smart Spending Strategies
    Master Your Money: Essential Tips to Save Your Monthly Salary and Achieve Financial Stability
    RipperFay: A Business Crime Phenomenon in the Digital Era
    Understanding Trumpcare: Efforts to Reform the Health System in the United States
    Understanding Nexus in the Context of Various Fields
  • Securities Markets
    Securities MarketsShow More
    Universal Basic Income (UBI)
    Melt-Up Phenomenon in Economics
    Main Pillars of Modinomics
    Average Annual Growth Rate (AAGR)
    The Rise of Green Chip Stocks and Their Performance
  • Economic Status
    Economic StatusShow More
    Apple Circumvents New US Tariffs With Urgent Airlift from India
    Challenges in Using Watchlists
    What is Behavioral Economics?
    What is Gambler Fallacy in Capital Markets?
    The Impact of Engels’ Economic Theory on Socialism and Communism
Reading: Trump’s Tariff Policy Threatens Key Indonesian Exports 10 Vulnerable Sectors at Risk
Share
Aa
informabank.cominformabank.com
Search
  • Home
  • Categories
  • More Foxiz
    • Blog Index
    • Forums
    • Complaint
    • Sitemap
Follow US
Made by ThemeRuby using the Foxiz theme. Powered by WordPress
informabank.com > Blog > Around The World > Trump’s Tariff Policy Threatens Key Indonesian Exports 10 Vulnerable Sectors at Risk
Around The WorldEconomic Trends

Trump’s Tariff Policy Threatens Key Indonesian Exports 10 Vulnerable Sectors at Risk

6 Min Read 570k Views

The potential revival of aggressive U.S. tariff policies under former President Donald Trump could deal a severe blow to Indonesia’s export-driven economy, with analysts warning that 10 major product categories—ranging from electrical machinery to processed seafood—face heightened risks of trade disruptions. As Trump campaigns on a platform of “reciprocal tariffs” and stricter trade enforcement, Indonesian industries reliant on the U.S. market are bracing for higher costs, reduced competitiveness, and possible retaliatory measures. Below are the exports most likely to bear the brunt of the policy shift:

  1. Electrical Machinery and Equipment (HS Code 85)

Accounting for over $3.2 billion in annual exports to the U.S., electrical machinery—including wiring, circuit boards, and generators—is Indonesia’s top export to America. Trump’s proposed 15–20% tariffs on imported electronics would directly raise costs for U.S. manufacturers reliant on Indonesian components, potentially triggering order cancellations. Companies like PT Schneider Electric and PT Panasonic Manufacturing Indonesia, which supply global supply chains, fear losing market share to competitors in Vietnam or Mexico.

  1. Knitted Apparel and Accessories (HS Code 61)

Indonesia’s $1.8 billion knitted garment industry, a critical employer in Central Java and West Java, faces existential risks. U.S. brands like Gap and Nike source millions of T-shirts, sweaters, and hosiery items from Indonesian factories. Tariffs of 10–25% could force buyers to shift orders to cheaper FTA partners like Bangladesh or Cambodia, jeopardizing 500,000 textile jobs.

  1. Footwear (HS Code 64)

Indonesia exported $1.5 billion worth of footwear to the U.S. in 2023, but its 5% share of the American market pales next to Vietnam’s dominance. Trump’s tariffs, combined with stricter rules of origin under the U.S.-Vietnam trade deal, could erase Indonesia’s cost advantage. Major producers like PT Panarub Industry (supplier to Adidas) warn that price hikes would render Indonesian shoes uncompetitive.

  1. Non-Knitted Apparel (HS Code 62)

Formal wear, denim, and other non-knitted garments generate $1.2 billion in annual U.S. exports. With U.S. retailers already negotiating lower prices amid weak consumer demand, tariffs could accelerate the shift to automated factories in Ethiopia or Turkey. “Our profit margins are razor-thin,” said a Surabaya-based factory owner. “Even a 5% tariff would wipe us out.”

  1. Animal/Vegetable Fats and Oils (HS Code 15)

Palm oil derivatives, used in everything from biofuels to snacks, contribute $900 million to Indonesia’s U.S. exports. Though direct tariffs on palm oil are unlikely (due to U.S. food industry lobbying), Trump’s broader “reciprocal” trade rules could restrict Indonesian biodiesel and oleochemicals. The EU’s recent deforestation regulations already complicate access to Western markets, leaving exporters like Musim Mas vulnerable.

  1. Rubber and Rubber Products (HS Code 40)

Indonesia, the world’s second-largest natural rubber producer, ships $750 million worth of tires, gloves, and industrial rubber to the U.S. annually. Tariffs would compound existing challenges like falling global rubber prices and competition from synthetic alternatives. Top firms like PT Gajah Tunggal, a major tire supplier to Walmart, may cut production if demand falters.

  1. Furniture and Lighting (HS Code 94)

U.S. buyers imported $600 million in Indonesian furniture last year, drawn by teakwood and rattan craftsmanship. However, tariffs of 10–15% could push retailers like IKEA and West Elm to source from tariff-exempt FTA partners like Malaysia. Small workshops in Jepara, Central Java—a furniture hub employing 200,000 workers—are most at risk.

  1. Fish and Shrimp (HS Code 03)

Indonesia’s $550 million seafood exports to the U.S., including frozen shrimp and tuna, face a double threat: tariffs and stricter FDA inspections. Trump’s 2018 seafood tariffs hit Indonesian producers hard, and a repeat could benefit rivals like India or Ecuador. “We’re still recovering from COVID-era logistics chaos,” said a Bali-based exporter. “This would be a knockout punch.”

  1. Mechanical Machinery (HS Code 84)

Industrial machinery and parts, worth $500 million annually, underpin Indonesia’s ambitions to move up the manufacturing value chain. However, U.S. tariffs on pumps, engines, and construction equipment would stall growth for firms like PT Komatsu Indonesia, which relies on American mining and agriculture sectors.

  1. Processed Meat and Fish (HS Code 16)

Canned tuna, sardines, and ready-to-eat meals generate $300 million in U.S. sales, but tariffs could cripple this niche sector. Starkist and Chicken of the Sea, which package Indonesian-caught tuna for American shelves, may relocate processing to Thailand or the Philippines to avoid levies.

Broader Implications and Industry Response

The Indonesian government has urged Washington to exempt strategic partners from tariffs, citing the two nations’ $40 billion bilateral trade relationship. However, with Trump prioritizing domestic manufacturing, concessions appear unlikely. Trade Minister Zulkifli Hasan warned of retaliatory measures, including restrictions on U.S. agricultural imports, but analysts caution that Indonesia lacks leverage compared to larger economies like China.

“We’re collateral damage in a U.S.-China trade war,” said Lili Yan Ing, an economist at the ASEAN Secretariat. “Diversification to ASEAN and Middle Eastern markets is essential, but it won’t happen overnight.”

For now, exporters are slashing prices, hedging currency risks, and pleading for government subsidies. Yet with Trump leading polls ahead of November’s election, Indonesia must prepare for a turbulent new era of protectionism—one that threatens to unravel decades of economic progress.

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
InformaBank
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Author
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

HOT NEWS

Effective Resource Allocation Strategy using Activity Based Budgeting

Investment Asset

Mastering Fair Stock Price Calculation: A Smart Guide to Avoid Investment Mistakes

Investing in stocks can be profitable if done wisely, and one of the most important…

Investor Considerations in Investing

In today's competitive world of modern finance, making smart investment decisions is critical to an…

How the Bicameral System Works in Modern Politics

The bicameral system is a fundamental aspect of many modern political systems, including in many…

Latest News

Factors that Influence the USD Value in Major Pairs
Investment Asset
President Trump’s Bold Congressional Speech: A Vision for Greenland’s Future
Around The World Political Views
China Threatens Retaliatory Measures Against Countries Negotiating with U.S. Over Import Tariffs
Economic Trends Political Views
Indonesian cellular operators are facing new eSIM regulations from the government
Digitalization

YOU MAY ALSO LIKE

Physical Gold vs Digital Gold: Key Advantages and Disadvantages You Must Know

Gold has always been a popular investment choice for individuals looking to preserve wealth, hedge against inflation, and diversify their…

Economic Trends
423.7k Views 5 Min Read

How the Iran-Israel War is Reshaping Global Gold Prices: Insights for Investors

The escalating conflict between Iran and Israel has sent shockwaves throughout global financial markets, with gold prices prominently impacted by…

Around The WorldEconomic Trends
623.7k Views 5 Min Read

The Arab World Unites in Condemnation of Provocative Actions at Al-Aqsa Mosque

The simmering tensions in the Israeli-Palestinian conflict have once again flared, prompting widespread condemnation from Arab nations following reported plans…

Around The WorldPolitical Views
323.7k Views 4 Min Read

The Supreme Court Ruling on Venezuelan Deportations: A Case Study in Trump’s Ire and the Limits of Executive Power

The Supreme Court's recent decision to halt the deportation of Venezuelan nationals has ignited a predictable firestorm of controversy, primarily…

Around The WorldPolitical Views
323.7k Views 4 Min Read

MORE NEWS

Show All Articles

BYD Stock Soars 6% on Breakthrough EV Charging Technology Announcement

Investors rally behind Chinese automaker’s claim of 5-minute full charge capability Shenzhen, March 18, 2025 —…

Automotive DashboardEconomic Trends
412.6k Views 5 Min Read

Indonesia U-17 Secures Spot in 2025 U-17 World Cup in Qatar Following Group C Thriller

In an electrifying twist during the Group C matches of the 2025 AFC U-17 Asian…

Around The WorldSports Agenda
398.9k Views 5 Min Read

US Finance Minister Scott Bessent Urges Caution as Trading Partners React to Trump’s Tariff Program

In a measured response to the recent tariff program initiated by President Donald Trump, US…

Around The WorldEconomic Trends
798.9k Views 5 Min Read

Tragedy in Somalia: Kenyan Aircraft Crashes Near Mogadishu, Claiming Five Lives

On Saturday, March 22, 2025, a Kenyan aircraft reportedly crashed near Mogadishu, Somalia, resulting in…

Around The World
298.9k Views 4 Min Read
Show More

We use our own and third-party cookies to improve our services, personalise your advertising and remember your preferences.

  • About Us
  • Contact Us
  • Privacy Policy
  • Terms of Use
  • Business Decisions
  • Investment Asset
  • Financial System
  • Securities Markets
  • Economic Status

InformaBank US

The Business Centre 132, My Street Kingston, New York 12401 United States
Tel: +1-542-235-3011

© 2025  All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?