US Tariffs on Imports from Indonesia

Indonesia saw its tariff rate drop from 32% (IEEPA) to 10% (Section 122), a 22-point reduction that strengthens its position as a diversified manufacturing alternative. US imports from Indonesia total approximately $28B annually across apparel, rubber, nickel, and electronics.

There is no bilateral FTA between the US and Indonesia, though Indonesia benefits from GSP preferences on eligible products. Indonesia is the largest economy in Southeast Asia and a member of ASEAN and RCEP. The SCOTUS ruling has leveled the tariff playing field across ASEAN nations, all now at 10%. Indonesia's nickel and critical minerals exports give it a unique strategic importance.

Key Products Imported from Indonesia

Top imports include apparel and garments, rubber and rubber products, electronics, plywood and wood products, palm oil derivatives, footwear, tin, and nickel. Indonesia is the world's largest producer of palm oil and nickel, and a growing supplier of EV battery precursor materials.

Recent Changes

Feb 20, 2026: SCOTUS struck down IEEPA tariffs — Indonesia's rate dropped from 32% to 10% Section 122 (expires ~July 24, 2026). Section 232 steel and aluminum tariffs of 50% remain. The US-Indonesia critical minerals agreement continues facilitating trade in EV battery materials. Indonesia's nickel export ban on raw ore remains in place, driving domestic processing expansion.

Tips for Importers

With all ASEAN nations now at 10% Section 122, Indonesia competes on capability rather than tariff advantage. Indonesian nickel and critical minerals may benefit from US critical minerals policy incentives for EV supply chains. Palm oil product classification affects rates significantly — refined vs. crude palm oil face different MFN duties. For apparel, Indonesia now matches Vietnam and Bangladesh at 10%, so competition shifts to quality, capacity, and lead times.