Nasbi made the statement in response to executive orders and letters signed by US President Donald Trump on Monday, which outlined updated tariff rates for countries targeted under his reciprocal trade policy.
“The initial deadline for talks was set for tomorrow. But in his latest statements, President Trump said the new tariffs would take effect on August 1. We view this as a chance to continue dialogue and negotiations,” Nasbi told reporters in Jakarta on Tuesday.
He noted that in a letter to Indonesian President Prabowo Subianto, Trump expressed a willingness to consider favorable proposals that could lead to adjustments in the tariff rate.
“President Trump said in the letter that there’s still room to reduce the rate,” Nasbi added.
Despite several rounds of negotiations, the US has moved forward with plans to impose the 32 percent tariff, first announced on April 2, on all Indonesian imports.
“Starting August 1, 2025, we will charge Indonesia a tariff of only 32 percent on any and all Indonesian products sent into the United States, separate from all sectoral tariffs,” Trump wrote in a letter dated July 7, which he addressed to President Prabowo.
Trump said the tariff is intended to address the longstanding US trade deficit with Indonesia.
“Please understand that the 32 percent figure is far less than what is needed to eliminate the trade deficit disparity we have with your country,” he wrote.
He also warned that if Indonesia responds with higher tariffs of its own, the US will retaliate by matching the increase—on top of the existing 32 percent.
However, Trump offered a potential way forward: if Indonesia manufactures products within the US, it could be exempted from the tariffs. He also promised fast-track approvals for such investments.
Trump further indicated that the tariff rate may be revised if Indonesia opens its market more widely to American goods and services.
A fact sheet on the White House website confirmed that similar letters had been sent to several countries. While Indonesia and Thailand remain subject to tariffs of 32 and 36 percent, respectively, Cambodia’s rate was lowered from 49 to 36 percent.
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Translator: Mentari D, Tegar Nurfitra
Editor: Anton Santoso
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