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Impact of Indonesia US trade deal on US Importers (by HTS codes)

  • Writer: emails419
    emails419
  • Jul 30
  • 3 min read

Here’s how the U.S.–Indonesia reciprocal trade agreement—finalized in mid‑July 2025—affects U.S. importers by HTS (Harmonized Tariff Schedule) code categories:


Tariff Structure by Product Category (HTS‑Based Overview)

1. Originating Indonesian Goods

  • New uniform import duty of 19% on all Indonesian-origin imports into the U.S., replacing the previously threatened 32% rate Kroll+15Lexology+15The White House+15.

  • Possible reductions for commodities not produced domestically (e.g., tropical products like coffee, cocoa, mangoes) may be exempted or subject to lower tariffs—but specifics by HTS remain under negotiation The White House+2Lexology+2Reuters+2.

2. U.S. Exports to Indonesia

  • Indonesia will eliminate duties on ~99% of HTS tariff lines covering U.S. goods—including agricultural (HTS 01‑24), industrial machinery (84‑85), chemicals (28‑38), pharmaceuticals (30), automotive (87), medical devices (90), information and communications tech products—effectively 0% duty entry for most U.S. exporters The White HouseThe White HouseModern Diplomacy.

3. Transshipment & Rules of Origin


Implications by HTS Code Groupings

HTS Code Range

Product Category

U.S. Importer Impact

09

Coffee, cocoa, tea

Possibly 0%–19%, highest relief if exempted The White House+3Lexology+3The White House+3

61–62

Apparel & textiles

Facing 19% duty, wary of margin compression

71

Precious stones/metals

Includes critical minerals: 19%, but raw nickel & copper exports from Indonesia will see eased export restrictions to U.S. The White HouseReuters

84–85, 87–90

Machinery, vehicles, devices

Subject to 19% tariff; U.S. exports into Indonesia now duty‑free and with fewer non‑tariff requirements

01–24

Agricultural products

Importers pay 19%; U.S. exporters enter Indonesia duty-free

Others

Chemicals, tech, minerals

Also at 19% unless negotiation yields exemption; U.S. exports now nearly tariff‑free Modern DiplomacyThe White House


Key Impacts for U.S. Importers

  • Cost Increase: Indonesian-origin imports across apparel, machinery, furniture, agriculture now face a flat 19% tariff.

  • Margin and Price Strategy: Margins may shrink unless costs are passed to consumers; some importers may stockpile inventory to delay effects Investopedia.

  • Transshipment Risks: HTS lines need close monitoring—goods misclassified or transshipped may trigger extra duties up to 40%.

  • HTS Due Diligence: Importers entering products under special or lower-duty codes (e.g. 9903.XX) should revisit classification strategy in light of new rules Krollhts.usitc.gov.


Recommendations for U.S. Importers

  1. Map your product HTS codes against originating country determinations—ensure goods imported from Indonesia qualify for Indonesian origin, not a third country.

  2. Evaluate tariff exposure for relevant HTS lines—especially textiles (HS 61/62), agriculture (HS 09, 01–24), machinery (84–85), minerals (26/71).

  3. Consider HTS-specific exemptions: Monitor ongoing rulemaking for tropical products like coffee, cocoa, which may see duty reductions.

  4. Strengthen supply chain compliance around rules of origin—documentation and supplier audits will matter more under enforcement of anti-transshipment provisions.

  5. Explore duty mitigation programs (Foreign‑Trade Zones, bonded warehouses) if maintaining inventories of Indonesian goods to reduce cash burden Kroll.


Bottom Line

  • The Indonesia deal locks in a 19% duty for originating Indonesian goods across nearly all HTS codes.

  • In return, U.S. exporters see near-total elimination of duties entering Indonesia.

  • HTS‑specific strategies—particularly around transshipment, origin compliance, and product classification—will be critical for U.S. importers.

 
 
 

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