Why Trump Imposes Tariffs on Many Countries and Indonesia?

What did US President Donald Trump say about new import tariffs?

The President of the United States, Donald Trump, announced a list of new base tariffs and import duties to numerous trade partners on Wednesday (2/4/2025) local time or Thursday Indonesian time. Trump referred to the day the announcement was made as "Liberation Day."

Trump imposed an average tariff of 10 percent on imported goods from around the world as of April 5, 2025. This tariff was even applied to the uninhabited Heard Island and McDonald Island, as well as the remote Norfolk Island.

In addition, Trump imposed "reciprocal tariffs" on several countries effective April 9, 2025. The European Union received a 20 percent tariff. From Asia, Singapore was subjected to a 10 percent tariff, the Philippines 17 percent, Malaysia 24 percent, China 34 percent, Thailand 36 percent, Vietnam 46 percent, and Cambodia 49 percent.

Previously, Trump had also imposed new import tariffs on Canada, Mexico, and China for certain reasons, namely migration and drugs.

What about the fate of Indonesia?

Indonesia is subject to a reciprocal tariff of 32 percent. Referring to the website of the Ministry of Trade of the Republic of Indonesia, the United States is a contributor to the national non-oil and gas trade surplus in 2024. The trade surplus between Indonesia and the United States amounts to 16.08 billion US dollars out of the total non-oil and gas trade surplus in 2024, which stands at 31.04 billion US dollars.

Indonesia's non-oil and gas exports to the US include garments, electrical equipment, footwear, and vegetable oil. The Indonesian government is currently preparing several strategic measures and inviting ASEAN member countries to respond to the implementation of these tariffs.

"We will soon send a high-level delegation to Washington DC to negotiate directly with the US Government. Indonesia has also communicated with Malaysia as the holder of the ASEAN Chairmanship to take joint steps, considering that all 10 ASEAN countries are affected by the imposition of reciprocal tariffs by the US," said Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso, Thursday evening (3/4/2025).

Why did Trump impose new import tariffs?

Trump is highly eager to bring back the Golden Age, the era of America's glory. For a long time, Trump has believed that raising tariffs is the solution to reviving the U.S. economy from trade deficits with both allies and adversaries. "We are finally putting America first," said Trump.

2024 trade data shows that the US has a $1.2 trillion goods trade deficit with 92 countries. However, the US also has a surplus with 111 countries.

According to Trump, regarding trade, the US has subsidized many countries to the point of deficit so that those countries advance. Not just an economic problem, the trade deficit is a national emergency.

White House trade adviser Peter Navarro said the new tariffs would boost U.S. revenues by $600 billion a year. If achieved, it would be the country's biggest tax revenue boost since World War II.

What are the responses of various countries?

Most countries hope to have a dialogue with the US, although some have prepared plans for retaliatory tariffs to respond to the US move. Australia, New Zealand, the UK, Mexico and Italy will choose the negotiation path. If it fails, Italy is preparing another plan.

From the statement issued by the government, Indonesia also tends to choose the negotiation path. In addition to bilateral, Indonesia will discuss the tariff issue with ASEAN member countries.

The EU says it is ready to negotiate, but has prepared countermeasures against US tariffs if they go ahead. Vietnam, which has already cut some tariffs on US imports to please Trump, is reportedly preparing to send a delegation to Washington DC for talks.

Canada is ready to retaliate with reciprocal tariffs. Ottawa is also taking non-tariff measures, such as boycotting U.S. products and cutting off energy flows to several U.S. states.

Why are uninhabited and remote areas also subject to new import tariffs by Trump?

In addition to trading partners, Trump also “swept” many areas with new import tariffs, including Heard Island and McDonald Island, remote islands inhabited by penguins. Located not far from the South Pole.

Referring to the Associated News Agency report titled "Trump's tariffs aren't strictly reciprocal. Here's how he calculated them", the tariffs imposed by Trump, the White House said, were indeed based on complex calculations.

Heard Island and McDonald Island, the two territories were hit with tariffs because they were allegedly used as re-export points for a country's products. "The (U.S.) administration argues that creating a base levy with few exceptions is necessary to prevent China and other countries from evading the new tariffs by producing goods and then shipping them to Vietnam, Cambodia, Mexico or elsewhere for shipment to the U.S. That's why the White House's list of locations to be hit with tariffs includes obscure places like Heard Island and McDonald Island, which are uninhabited," AP said.