Trump Warns Prabowo Against Retaliatory Tariffs

TEMPO.CO, Jakarta - United States President Donald Trump has cautioned Indonesia against imposing retaliatory tariffs in response to the 32 percent reciprocal tariff he has implemented. This warning was conveyed in a letter to President Prabowo Subianto, signed by Trump on Monday, July 7, 2025.

"If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 32% that we charge," Trump stated in his letter, which he uploaded to his personal social media account, Truth Social, on Tuesday, July 8, 2025.

Trump explained that the 32 percent import tariff is necessary to address the tariffs and non-tariff barriers that Indonesia has applied for years. He asserted that Indonesia's trade policies and barriers have resulted in a trade deficit for the United States.

"This Deficit is a major threat to our Economy and, indeed, our National Security!" Trump wrote.

Trump claimed that the 32 percent tariff is significantly lower than the amount needed to balance the trade deficit with Indonesia. Previously, the United States Trade Representative's Office (USTR) reported that the U.S.-Indonesia trade deficit reached US$17.9 billion in 2024, up 5.4 percent or US$923 million from 2023.

"Please understand that the 32% number is far less than what is needed to eliminate the Trade Deficit disparity we have with your Country," Trump emphasized.

Furthermore, Trump stated that he could revoke the import tariff if Indonesia chooses to establish manufacturing facilities in the United States. He also promised that any process related to the cancellation of the reciprocal tariff would proceed quickly if the Indonesian government plans to build a factory in the U.S.

"As you are aware, there will be no Tariff if Indonesia, or companies within your Country, decide to build or manufacture product within the United States and, in fact, we will do everything possible to get approvals quickly, professionally, and routinely — In other words, in a matter of weeks," Trump affirmed.

Additionally, Trump announced a postponement of the reciprocal tariffs' implementation until August 1, 2025. This follows a previous 90-day postponement that was set to expire on July 9, 2025. He stated that the decision to extend the postponement was made after considering the latest information and recommendations from senior officials, as well as developments in negotiations with several trading partners, as communicated via the White House website.

Anastasya Lavenia Yudi contributed to the report.

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