Indonesia Denies BRICS Link to U.S. Tariffs
Minister Prasetyo Hadi clarifies trade dispute and bloc membership timing
Jakarta – Indonesian State Secretariat Minister Prasetyo Hadi has firmly stated that U.S. President Donald Trump’s imposition of import tariffs on Indonesian products bears no relation to Indonesia’s membership in the BRICS economic bloc.
Tariffs Predate BRICS Membership
Prasetyo Hadi explained that the tariffs are not exclusive to Indonesia, with similar measures affecting numerous other nations. He further clarified that the announcement of the 32 percent import tariff was made well in advance of Indonesia officially joining BRICS as a full member.
“In fact, there is no connection between the import tariff and BRICS membership,”
—Prasetyo Hadi, Presidential Spokesperson
U.S. Trade Policy Explained
President Donald Trump publicly declared his intention to implement an additional 10 percent tariff on BRICS member countries during their annual summit in Rio de Janeiro, Brazil. Trump characterized the economic policies of the BRICS nations as being “anti-United States,” issuing a firm statement on his social media platform, Truth Social, on Sunday, July 6, 2025:
“There will be no exceptions to this policy.”
—Donald Trump, U.S. President
Further notices regarding trade agreements and tariffs were slated to be distributed beginning Monday, July 7, 2025. A formal letter, dated July 7, 2025, addressed to Indonesian President Prabowo Subianto, stipulated a 32 percent import duty on all Indonesian goods entering the United States, effective August 1, 2025.
Trade Deficit Cited
Trump justified the tariff, stating it was a necessary step to address the trade deficit between the two nations. The U.S. Trade Representative (USTR) reported a trade deficit with Indonesia amounting to $17.9 billion in 2024, a 5.4 percent increase from the previous year. Trump also indicated a willingness to increase tariffs if Indonesia were to reciprocate.
Conditional Exemption Offered
A potential exemption from these tariffs was outlined, contingent on Indonesia establishing production facilities within the United States. Trump asserted that such an investment would negate the tariffs.
“There will be no tariffs if Indonesia, or companies within your Country, decide to build or manufacture product within the United States,”
—Donald Trump, U.S. President
The implementation of these tariffs, initially slated for an earlier date, was ultimately postponed to August 1, 2025.
Indonesia Pursues Negotiations
In response, Coordinating Minister for the Economy Airlangga Hartarto traveled to Washington D.C. following the BRICS Summit. His objective is to engage in negotiations and persuade the U.S. of Indonesia’s value as a strategic trading partner.
“In this latest strategy, the Coordinating Minister will emphasize that Indonesia is a highly strategic country due to its abundant natural resources,”
—Haryo Limanseto, Spokesperson for the Coordinating Ministry for the Economy
Indonesia’s strategy reportedly focuses on highlighting its rich natural resources as a key asset in international trade relations. This diplomatic effort comes as global trade tensions continue to impact various economies.
