Fact Check: Does Indonesia have tariffs of 64% on the USA?

Does Indonesia Have Tariffs of 64% on the USA?

Introduction

The claim that Indonesia imposes tariffs of 64% on imports from the United States raises significant questions about the accuracy of such a figure. This assertion appears to be an exaggeration or misinterpretation of the actual tariff rates currently in place. To better understand the situation, we will explore the available evidence regarding Indonesia's tariff structure and its trade relations with the U.S.

What We Know

1. Current Tariff Rates: As of 2023, Indonesia's average Most-Favored Nation (MFN) tariff rate is approximately 8%, with specific rates varying by product category. For instance, agricultural products have an MFN tariff of around 8.6%, while non-agricultural products are at about 7.9% 5.

2. U.S. Tariffs on Indonesia: The Trump administration imposed a 32% tariff on certain Indonesian goods as part of a broader trade strategy aimed at addressing trade imbalances. This tariff was described as a "reciprocal measure" in response to Indonesia's trade barriers 26.

3. Trade Concessions: Recently, Indonesia announced concessions on U.S. imports, including reductions in taxes on electronics and steel, indicating a willingness to negotiate and potentially lower tariffs further 3.

4. Historical Context: Indonesia has committed to 96.3% of its tariff lines under the World Trade Organization (WTO), with an average bound tariff rate of 37.1% 5. This context suggests that while Indonesia does have tariffs, they are not uniformly high across all products.

Analysis

The claim of a 64% tariff appears to lack substantiation when compared to verified data. The primary sources discussing Indonesia's tariffs indicate that the average rates are significantly lower.

• Source Reliability: The U.S. Trade Representative's data 1 and reports from reputable news organizations like Reuters 4 and Forbes 6 provide a credible foundation for understanding current tariff rates. These sources are generally reliable, as they are backed by governmental and established media reporting.

• Potential Bias: Some sources, such as the Jakarta Globe 7 and the Jakarta Post 8, may have a nationalistic bias, potentially framing tariffs in a way that emphasizes negative impacts on Indonesia. However, they still provide factual information about tariff rates.

• Methodological Concerns: The claim of a 64% tariff could stem from a misunderstanding or misrepresentation of specific product tariffs or from combining various tariff rates across different categories. It is crucial to differentiate between average rates and specific tariffs that may apply to certain goods.

• Missing Information: Additional details regarding the specific products that might be subject to higher tariffs would be helpful to clarify the context of the claim. Furthermore, a comprehensive analysis of Indonesia's tariff structure compared to other countries would provide a clearer picture of its trade policies.

Conclusion

Verdict: False

The assertion that Indonesia imposes tariffs of 64% on imports from the United States is false. The evidence indicates that Indonesia's average Most-Favored Nation (MFN) tariff rate is approximately 8%, with specific rates varying by product category. While there are higher bound tariff rates for certain products, the claim of a uniform 64% tariff lacks credible support and appears to be a misinterpretation of the actual tariff structure.

It is important to recognize that while Indonesia does have tariffs, they are not uniformly high across all products, and recent trade concessions suggest a willingness to negotiate further reductions. The context of international trade and tariffs is complex, and claims should be evaluated carefully against reliable data.

However, it is essential to acknowledge the limitations in the available evidence. The specific products that may attract higher tariffs were not detailed in the sources reviewed, and the potential for misunderstanding or misrepresentation exists. Readers are encouraged to critically evaluate information and seek out reliable sources when assessing claims related to international trade and tariffs.

Sources

1. Reciprocal Tariff Calculations - United States Trade Representative. Available at: ustr.gov
2. Can Indonesia Rise to the Trump Tariff Challenge? | Asialink. Available at: asialink.unimelb.edu.au
3. Indonesia announces trade concessions for US ahead of ... - Reuters. Available at: reuters.com
4. Indonesia will not retaliate against Trump tariff, official says - Reuters. Available at: reuters.com
5. Indonesia Hit with 32% Import Tariff Increase by Trump Administration - Business Indonesia. Available at: business-indonesia.org
6. Indonesia To Ease Import Curbs, Negotiate U.S. Tariffs As ... - Forbes. Available at: forbes.com
7. Why Indonesia Slapped with Higher US Tariffs - Jakarta Globe. Available at: jakartaglobe.id
8. The flawed logic of Trump's 'reciprocal tariffs' and the impact on ... - The Jakarta Post. Available at: thejakartapost.com
9. Alleged vs. Actual Tariff Rates on U.S. Exports to Key Asian Countries - Economics Insider. Available at: economicsinsider.com
10. Indonesia may fare better than rest of Asia when Trump's tariffs kick ... - The Edge Singapore. Available at: theedgesingapore.com