Indonesia and Japan Discuss Impact of US Tariff Policies

2025/05/08
Taxation
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Indonesia
Malaysia
Indonesian Finance Minister Sri Mulyani Indrawati and Japanese Finance Minister Katsunobu Kato met on the sidelines of the ASEAN+3 Finance Ministers and Central Bank Governors’ Meeting in Milan, Italy, to discuss the impact of US tariff policies. Both countries are concerned about the effects of US tariffs on the automotive and electronics industries, which are pillars of global trade dominated by the US, Japan, China, and Europe. Indonesia, as a first-mover country in negotiating US tariffs, has received positive responses from the US and has prepared a comprehensive policy package covering tariff barriers, non-tariff barriers, and the US trade deficit. Japan agreed to strengthen trade cooperation with ASEAN, noting that cultural, geographical, and historical ties among ASEAN+3 countries are a strong foundation for regional stability and prosperity. Previously, the US announced reciprocal import tariffs on various countries, including Indonesia, with a 32% tariff on Indonesian imports. This policy was initially scheduled to take effect on April 9, 2025, but has been postponed for 90 days. Indonesia is currently in technical negotiations with the US regarding reciprocal tariffs.
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