The primary threat stems from the unilateral and uncompromising manner in which these tariffs are being imposed. President Trump has employed an unconventional method of assessment—calculating trade deficits and using them as justification to implement reciprocal tariffs.
Indonesia is reportedly being treated as if it imposes a 64% tariff on U.S. products, even though the actual average tariff rate Indonesia applies is only about 8.6%. The 32% tariff announced by the U.S. is framed as a “discounted” response to this perceived imbalance.
In reality, the United States still depends heavily on a range of Indonesian commodities, including palm oil, rubber, and agricultural products such as kratom. The underlying logic of this tariff policy is to pressure partner nations into opening their markets further to U.S. goods and to reduce American reliance on imports.
Yet despite this aggressive stance, data shows that the U.S. imported 4,702.6 tons of kratom from Indonesia in 2023, and 3,290 tons in 2024. The decline in imports is partly due to controversial policies enacted by some U.S. states that have banned kratom. Furthermore, in early March 2025, President Trump announced sweeping new trade measures that have caused major disruptions across global trade sectors.
While these policies are now in effect, Indonesia’s government has reportedly begun bilateral negotiations with the Trump administration to revisit the imposed tariff structure. A deeper analysis reveals that this situation could be detrimental to both sides: Indonesia could face significant export losses—especially in kratom—while U.S. importers may be forced to absorb rising costs, ultimately passing them on to consumers.
Despite the decline in exports to the U.S., Indonesian kratom remains in demand globally. Countries such as India, Japan, Germany, and the Czech Republic continue to import kratom, although their volumes are much smaller compared to the U.S. market.
