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

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

• Enhanced rules of origin are under negotiation to ensure benefits apply only to genuine U.S. and Indonesian goods—not routed via third countries like China LexologySandler, Travis & Rosenberg, P.A.The Washington Post.

• Goods transshipped through Indonesia containing inputs from countries with higher tariffs may be subject to an additional surcharge (reported as up to 40% total tariff) Trade Compliance Resource Hub+14Sandler, Travis & Rosenberg, P.A.+14Barron's+14.

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.