UI Expert Urges Indonesia to Cancel 32% Tariff Talks with Trump - Here's Why You Shouldn't Panic

Bisnis | Ekonomi - Posted on 10 July 2025 Reading time 5 minutes

Hikmahanto Juwana, an international law expert from the University of Indonesia, has urged the Indonesian government to call off negotiations with the United States following President Donald Trump’s decision to impose a 32% tariff on Indonesian products. Hikmahanto questioned the relevance of continuing talks when the tariff decision had already been made.

 

“In my opinion, our Coordinating Minister shouldn’t even attend the meeting. If he’s already in the U.S., he should cancel any scheduled talks with American officials. Why? Because Trump has already issued an official letter stating that Indonesia will be subject to a 32% tariff. The question is—what’s left to negotiate?” Hikmahanto told reporters on Wednesday (July 9, 2025).

 

He further emphasized that Trump had clearly issued a threat to all BRICS member states. He noted that Indonesia should step back from negotiations, especially given Trump's announcement that BRICS nations may face an additional 10% tariff, potentially increasing the total to 42%.

 

“Let’s be realistic—are we going to say we’ll withdraw from BRICS just to avoid these tariffs? That’s not feasible. Therefore, I believe the Coordinating Minister should cancel any meetings with American counterparts and return home,” he stated.

 

However, Hikmahanto believes Trump’s tariff policy could face domestic resistance within the U.S., urging Indonesia not to overreact.

 

“Let’s just wait until August 1 to see if the tariffs are actually enforced. Who knows, the policy might be challenged by U.S. financial markets or other domestic stakeholders, forcing Trump to retract it. That’s why I think there’s no need to panic or rush into anything,” he advised.

 

Hikmahanto suggested that Indonesia should form a coalition with other countries to confront Trump’s import tariffs. In his view, a multilateral alliance could help frame the U.S. as a common adversary.

 

“This letter was issued on a bilateral basis. Remember, when Trump imposed similar tariffs in the past, it led many countries to see him as a shared enemy, triggering collective pushback,” he explained.

 

He proposed that such a coalition could begin with neighboring nations, noting that unified resistance might destabilize internal politics in the United States.

 

“If we stand together and form a coalition, the ones who’ll suffer the most will be the American people. They’ll bear the cost of these excessive tariffs. Let’s allow them to evaluate and determine Trump’s fate. Again, my point is: let’s wait and not attend any meetings with the U.S.,” he added.

 

Previously, Trump had warned Indonesia against retaliating with tariffs of its own. He threatened that any Indonesian response would result in tariffs even higher than the current 32%.

 

This warning was outlined in a letter from Washington signed by President Trump and addressed to Indonesia’s President Prabowo Subianto. Trump urged Indonesia to understand the rationale behind the imposition of the 32% tariff on all Indonesian imports entering the U.S.

 

“If, for any reason, you decide to increase tariffs on American goods, those additional charges will simply be added on top of the 32% we’ve already imposed,” Trump stated in the letter, quoted on Tuesday (July 8).

 

Trump explained that the tariff measure was necessary due to what he perceived as an imbalance in trade relations between the U.S. and Indonesia. He claimed that this imbalance had caused a trade deficit that he viewed as a significant threat to both the American economy and national security.

Source: detik.com

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