Indonesia Threatened with Additional Trump Tariffs

WASHINGTON DC, TUESDAY—Indonesia and 14 other countries need to prepare for additional import tariffs when trading with the United States. The trade balance surplus is the cause.

U.S. President Donald Trump announced that additional import duty tariffs (BMI) will take effect on April 2, 2025. He referred to that date as the "Day of Liberation" for the U.S. economy. "We have been deceived a lot," he stated while announcing the plan to implement the tariffs on Monday afternoon (24/3/2025) Washington D.C. time or Tuesday Western Indonesian Time (WIB).

US media, The Wall Street Journal and Bloomberg, reported that there was a suspicion that the imposition of BMI would be postponed. Meanwhile, Reuters, citing two US officials, said that discussions on BMI were still ongoing. There is a chance that BMI for some will be implemented.

Last week, U.S. Treasury Secretary Scott Bessent and White House Financial Advisor Kevin Hasset said the U.S. is focused on raising tariffs on 15 countries. The targets are the 15 countries that enjoy the largest trade surpluses with the U.S. Bessent calls them the “dirty 15”.

Referring to the US Census Bureau data, Indonesia is exactly ranked 15th on the list. Jakarta, according to US data, enjoys a surplus of 19 billion US dollars from trade with Washington DC in 2024.

A surplus for Indonesia and other countries means a deficit for the United States. The U.S. Census Bureau recorded that the U.S. trade balance deficit has consistently exceeded 1 trillion U.S. dollars per year since 2021. Trump considers this a fraud and wants to change the situation. One of the methods is by imposing BMI.

Friends and foes are targeted by BMI under Trump. China is the primary target as it recorded the largest surplus among U.S. trading partners, amounting to 319 billion U.S. dollars in 2024 alone.

Mexico and Vietnam followed with USD 175 billion and USD 129 billion last year. Taiwan also achieved a surplus of USD 79 billion from trade with the United States in 2024.

Trump offered a reduction in BMI for countries willing to balance their trade deficit with the U.S. Balancing means partners purchasing more U.S. products. Thus, U.S. industries are expected to export more.

BMI can also be reduced if foreign entrepreneurs relocate their production to the US. Thus, their products in the US market will not be subject to BMI.

BMI tariff offers and policies are constantly changing. Next week, all cars exported to the US will be subject to BMI. After that, pharmaceuticals, semiconductors, and aluminum will follow.

Pharmaceuticals are the mainstay of the EU's exports to the US, while semiconductors are Taiwan's main export commodity to the US.

Meanwhile, China is upset and criticizing the US over Venezuela. Because, the US threatens to impose additional BMI tariffs of up to 25 percent on commodities from any country that buys Venezuelan oil.

US President Donald Trump announced the additional BMI plan on Monday (3/24). The addition will take effect on April 2, 2025. Among the list of oil importers are the US, China, India and Spain. "Venezuela has been very hostile to the US and the freedoms we support," Trump wrote on social media.

China views Trump's announcement as interference in Venezuelan affairs. "We call on the US to stop interfering in Venezuela's internal affairs and lift its illegal unilateral sanctions on Venezuela," Chinese Foreign Ministry spokesman Guo Jiakun said on Tuesday (3/25/2025) regarding the new tariffs.

Trump's announcement means there will be an additional BMI for commodities from China to the US. Previously, Chinese commodities to the US were subject to an additional 20 percent BMI by Trump.

Combined with Venezuela-related BMI, China's commodities to the US are hit by an additional 45 percent. No wonder Beijing is cursing.

The addition, Guo said, would only burden U.S. businesses and consumers. Because, in the end, the price component charged to importers and consumers in the U.S. will include BMI.

Since his inauguration, Trump has announced various BMI additions. However, the implementation of these additions has been delayed. For Canada and Mexico, for example, they were initially set to take effect immediately.

Then it was postponed for some time on the grounds that there would be negotiations. After that, it was announced again that it would be effective immediately.

The imposition of BMI tariffs on Venezuelan oil importers is up to the US State Department. The State Department can determine which countries are subject to the additional tariffs.

In February 2025, China bought 503,000 barrels of crude oil from Venezuela. Exports to China were equivalent to 55 percent of Venezuela's total crude oil exports. (AFP/AP/REUTERS)