Coordinating Minister Airlangga: Trump Tariff Could Drop to 19%

Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, shared that President Prabowo Subianto was actively involved in negotiating trade tariff revisions following U.S. President Donald Trump’s announcement of “Liberation Day” on April 2, 2025. Airlangga, who leads Indonesia’s inter-ministerial negotiation team, disclosed that President Prabowo promptly responded to Trump’s declaration by directing the team to send a formal letter to the White House. Indonesia was the first country to officially respond to Washington, D.C., with President Prabowo personally reviewing the letter before its dispatch. This information was revealed by Airlangga in an interview on Real Talk with Uni Lubis. The negotiation team, consisting of various ministries and agencies, was simultaneously engaged in trade discussions with the OECD and in the context of the Indonesia-EU Comprehensive Economic Partnership Agreement (IEU-CEPA). President Prabowo instructed the team to create a tailored trade package, known as the “pak pok menu”, to be presented specifically to the United States. The team’s efforts in meeting compliance standards resulted in Indonesia successfully lowering export tariffs to the U.S. from 32% to 19%. Airlangga confirmed meetings with U.S. Trade Representative Jamieson Greer and other officials, emphasizing Indonesia’s high level of compliance in the negotiation process. The crucial phone conversation between Presidents Prabowo and Trump played a significant role in finalizing the deal. Ultimately, the decision to reduce tariffs to 19% was made during this conversation. Airlangga concluded that both Presidents regarded the negotiation as resolved, with the tariff reduction being a joint decision between the two leaders.

Source link