Coordinating Minister Airlangga: Trump Tariff May Decrease to 19%

President Prabowo Subianto played a direct role in negotiating trade tariff adjustments following U.S. President Donald Trump’s “Liberation Day” announcement on April 2, 2025. Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, shared that President Prabowo was actively involved in responding to Trump’s declaration by instructing the negotiation team to send a formal letter to the White House promptly. This initiative made Indonesia the first country to officially respond to Washington, D.C. Airlangga mentioned that President Prabowo’s engagement in the negotiations aimed to develop a tailored trade package, referred to as a “menu,” aligning with ongoing trade discussions with the OECD and the Indonesia-EU Comprehensive Economic Partnership Agreement (IEU-CEPA). The team’s effort led to a reduction in Indonesia’s export tariffs to the U.S. from 32% to 19% due to meeting compliance standards. Airlangga also highlighted that a crucial phone conversation between Presidents Prabowo and Trump was pivotal in finalizing the trade deal. Ultimately, the decision to lower tariffs to 19% was mutually agreed upon by the two presidents during the phone call. This negotiation process was seen as a success, with both sides acknowledging the resolution.

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