Coordinating Minister Airlangga Predicts Trump Tariff to Decrease to 19%

Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, shared that President Prabowo Subianto played a direct role in negotiating trade tariff revisions after U.S. President Donald Trump’s announcement of “Liberation Day” on April 2, 2025. Airlangga mentioned that President Prabowo responded quickly to Trump’s declaration and instructed the team to send a formal letter to the White House. This move made Indonesia the first country to respond officially to Washington, D.C. Airlangga explained that the negotiation team, led by President Prabowo, was working on trade discussions with the OECD and the Indonesia-EU Comprehensive Economic Partnership Agreement (IEU-CEPA). President Prabowo instructed the team to create a tailored trade package, or “menu,” to offer specifically to the United States, aligning with President Trump’s expectations and aiming to address the trade deficit issue. Airlangga also confirmed that Indonesia’s export tariffs to the U.S. were lowered from 32% to 19% due to meeting all compliance standards with U.S. trade representatives. The final negotiation was concluded after a phone call between Presidents Prabowo and Trump, leading to the decision to reduce tariffs to 19%. This successful deal was a result of meticulous planning and strategic negotiations between the two countries.

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