Jakarta, ThedailyID — Indonesia could face an additional 10% tariff on exports to the United States after Washington raised concerns over alleged forced labor practices linked to several Indonesian products.
The warning emerged in the latest report from the Office of the United States Trade Representative (USTR), which highlighted labor rights issues as part of its trade policy review.
According to the report, products suspected of involving forced labor may become subject to stricter import restrictions and additional tariffs. The measure forms part of the US government’s broader effort to strengthen labor protections within global supply chains.
As a result, Indonesian exporters could face higher costs when accessing the American market if the allegations remain unresolved.
The US government has increasingly used trade policies to address labor rights concerns. Washington argues that products linked to forced labor create unfair competition and undermine international labor standards.
Meanwhile, Indonesian authorities emphasized their commitment to improving labor protections and ensuring compliance with national regulations. The government also continues discussions with US officials to prevent trade disruptions.
The potential tariff increase comes at a sensitive time for Indonesia’s export sector. The United States remains one of Indonesia’s largest trading partners and a key destination for manufactured goods, textiles, footwear, and agricultural products.
Moreover, business groups warned that an additional tariff could reduce the competitiveness of Indonesian exports compared with products from other countries.
Economists noted that any new trade barrier could place additional pressure on exporters already navigating global economic uncertainty. However, they also stressed that the final decision will depend on the outcome of ongoing investigations and bilateral negotiations.
For now, Indonesian exporters are closely monitoring developments as both governments continue discussions over labor standards and trade relations.
