Trump’s Reciprocal Tariffs Take Effect Aug. 7, Indonesia Hit with 19%—Strategic Minerals Exempt

JAKARTA, investortrust.id – The United States will begin implementing reciprocal tariffs on goods from 92 countries starting Wednesday, Aug. 7, 2025, with Indonesia among the nations facing a 19% rate, on par with fellow ASEAN members Thailand and Malaysia. However, some strategic Indonesian commodities will remain duty-free, boosting optimism that the country’s export competitiveness will hold firm.

Coordinating Minister for Economic Affairs Airlangga Hartarto confirmed the timeline during a press briefing in Jakarta on Friday, Aug. 1.

“It has been announced for 92 countries, and for Indonesia, the agreement is finalized. It will be effective on the 7th [of August],” said Airlangga.

The reciprocal tariff regime is part of former President Donald Trump’s broader policy shift aimed at leveling the trade playing field by mirroring tariffs imposed by partner countries on U.S. exports. The administration believes the new rates will enhance U.S. export competitiveness.

“Almost all ASEAN countries have completed negotiations. The reciprocal rate is 19% for most of them—except Singapore, which has the lowest tariff,” Airlangga added.

With the 19% rate, Indonesia will be competing under the same conditions as Thailand, Malaysia, Cambodia, and the Philippines. The government views this as a level playing field and expects minimal disruption to current trade flows.

Strategic Minerals Exempt

Despite the headline tariff rate, Airlangga emphasized that certain Indonesian commodities will be exempt. These include strategic minerals such as copper concentrate and copper cathode, which will enter the U.S. market tariff-free.

“These have been set to zero, aligning with ongoing discussions on strategic minerals like copper. The U.S. has already announced this policy,” he said.

Indonesia’s export profile is broadly similar to Thailand and Malaysia, particularly in sectors such as electronics and manufacturing. However, the country holds a distinct advantage in mineral resources—a category that the U.S. increasingly views as critical for its own industrial supply chains.

Airlangga remains confident that Indonesian goods will remain competitive despite the new tariff regime.

“We’ve always been competitive with Thailand and Malaysia. The important thing is, India’s rate is slightly higher,” he noted.

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