Philippines' 19% U.S. Tariff Matches Indonesia, Minister: "We Can Compete"

TEMPO.CO, Jakarta - Minister of Trade Budi Santoso responded to the latest trade deal between the United States and the Philippines. The agreement sees the Philippines matching Indonesia's import tariffs, with a 19 percent charge. 

"We can still compete," Budi told reporters in Cengkareng, West Jakarta, on Wednesday, July 23, 2025.

Prior to this, President Donald Trump announced that an agreement on tariffs had been reached with the Philippines following his meeting with President Ferdinand Marcos at the White House on Tuesday, July 22, 2025.

"We concluded our Trade Deal, whereby The Philippines is going OPEN MARKET with the United States, and ZERO tariffs. The Philippines will pay a 19% tariff," Trump wrote on Truth Social, citing Antara.

Meanwhile, on the same day, the White House announced that Indonesia and the United States had agreed on the framework for a reciprocal Trade Agreement. The framework was announced in a joint statement on Tuesday, July 22, 2025, U.S. time.

This framework includes key terms of agreement, including the imposition of a 19 percent tariff for Indonesian products and Indonesia's investment commitment in the U.S. "Indonesia will eliminate approximately 99 percent of tariff barriers for a full range of U.S. industrial and U.S. food and agricultural products exported to Indonesia," the U.S. government said in a statement quoted on whitehouse.gov on Wednesday, July 23, 2025.

In return, the U.S. will reduce the reciprocal tariff from 32 to 19 percent for products imported from Indonesia. Certain commodities not available in the U.S. will be considered for further tariff reductions.

In response to this news, Budi Santoso said the government is preparing a mapping of U.S. product imports as part of the tariff negotiations with Trump. "The important thing is that the tariff has been set at 19 percent. After that, there will definitely be an administrative process. Everything is still being prepared, so we are awaiting the next process," Budi told reporters in Cengkareng, West Jakarta, on Wednesday, July 23, 2025.

Budi did not specify the main commodities that will be imported from the U.S. He said the government will explain the import mapping in the trade agreement. The agreement also concerns non-tariff barriers. "We will regulate everything in the agreement."

However, he has not confirmed when the trade agreement negotiations will take place. "We'll wait for news from there. But the most important thing is that by August, there will be no changes in the reciprocal tariff," he said.

Anastasia Lavenia contributed to the writing of this article

Editor’s Choice: Indonesia Grants 0 Percent Tariffs to 99 Percent of U.S. Products

Click here to get the latest news updates from Tempo on Google News

Today's Top 3 News: Indonesian Government Regulation on Sexual Violence Victim Assistance Fund Raises Questions

1 jam lalu

Malaysia, Indonesia to Hold Further Sulawesi Sea Maritime Border Talks Next Week

2 jam lalu

Indonesian Govt Says U.S. Personal Data Transfer Deal Pending 'Technical Discussions'

2 jam lalu

Cyber Expert Highlights Pros and Cons of Personal Data Transfer Deal with U.S.

2 jam lalu

US Resumes Airborne Nuclear Operations Over UK Airspace

2 jam lalu

President Prabowo Announces Theme and Logo for Indonesia's 80th Independence Day

4 jam lalu

Indonesia Defends Local MSMEs with New Incentives Against Chinese F&B Invasion

4 jam lalu

U.S. Unveils Key Terms in Tariff Deal with Indonesia

4 jam lalu

US-Indonesia Trade Deal Covers Personal Data Transfer Provisions

5 jam lalu

Trump Announces 19% Tariff on Philippines in New Trade Deal

5 jam lalu