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Trump's Tariff Response Prompts Indonesia To Shift Exports To Australia And Europe

Coordinating Minister for Economic Affairs Airlangga Hartarto announced that the government plans to redirect a portion of its exports to Australia and Europe in response to the tariff policies implemented by U.S. President Donald Trump. 

"Our exports to the U.S. account for 10 percent, so we are certainly engaging with other partners, particularly to enhance our trade with the EU," Airlangga stated during a virtual press conference from the U.S. on Friday morning (April 18). 

He explained that this strategy is aimed at mitigating the anticipated decline in exports to the U.S. due to Trump's trade tariffs. 

To facilitate this initiative, the government is expediting the completion of the free trade agreement between Indonesia and the European Union, known as the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU CEPA). 

"Recently, in discussions with the Australian Minister of Trade, Australia also agreed to increase its import of Indonesian products," he added. 

In addition to Europe and Australia, Airlangga mentioned that Indonesia will also expand its export markets to several countries, including Mexico and various Latin American nations.  

Indonesia is facing a 32 percent trade tariff imposed by Trump, which is an additional charge on top of the existing 10 percent tariff applied to all countries. Furthermore, there are several other tariffs that have already been in place for Indonesian goods. 

Although Trump has suspended the implementation of these trade tariffs for 90 days, Airlangga noted that Indonesian textiles are already subject to an import tariff of 47 percent in the U.S., a significant increase from the previous rates of 10 to 37 percent. 

Tag: Airlangga Hartarto Australia Australia And Europe Donald Trump IEU CEPA