Indonesia
No retaliatory measures
Indonesia is the world's largest archipelago nation and a resource powerhouse whose strategic importance to the United States is growing rapidly. The country controls over 50% of global nickel production — the critical mineral for EV batteries — and has leveraged this dominance to attract billions in battery manufacturing investment from Chinese, Korean, and American companies.
Current Tariff
📊32%
Was 2.8%
US Imports
📥$28.2B
2024 total
US Exports
📤$10.8B
2024 total
Trade Balance
⚖️$-17.4B
US deficit
Trade Flow (2024)
Tariff Rate Change
📈 5-Year Import Trend
📋 Trade Relationship Analysis
Indonesia is the world's largest archipelago nation and a resource powerhouse whose strategic importance to the United States is growing rapidly. The country controls over 50% of global nickel production — the critical mineral for EV batteries — and has leveraged this dominance to attract billions in battery manufacturing investment from Chinese, Korean, and American companies.
The 32% reciprocal tariff complicates America's EV ambitions. Indonesian nickel, processed into battery-grade materials, is essential for Tesla, Ford, and GM's electric vehicle programs. The tariff adds significant costs to an already expensive supply chain and may push more nickel processing to China, the opposite of US policy goals.
Indonesia is also the world's largest palm oil producer, supplying food manufacturers, cosmetics companies, and biofuel producers. Rubber, textiles, and electronics round out the export profile. The $17.4 billion deficit is modest but growing as Indonesia industrializes.
Jakarta has not retaliated, instead offering to negotiate. Indonesia dangled access to its nickel reserves as a bargaining chip — threatening to restrict exports if tariffs aren't reduced. With 280 million people, Indonesia is the world's fourth-largest country and a growing consumer market that US companies want access to. The tariff relationship will likely evolve as EV battery supply chains become a national security priority.
Tariff Impact
Pre-2025
2.8%
Current
32%
Increase
+29.2%
🏷️ Top Imported Products
| Product | Tariff Rate | Import Value | Price Impact |
|---|---|---|---|
| Nickel & Battery Materials | 32% | $4.8B | +$1,000-3,000 per EV battery |
| Palm Oil & Derivatives | 32% | $3.6B | +15-25% food manufacturing costs |
| Rubber Products | 32% | $3.2B | +$10-30 per tire |
| Textiles & Clothing | 32% | $5.4B | +$5-15 per garment |
| Electronics Assembly | 32% | $4.2B | +15-20% component costs |
| Footwear | 32% | $2.8B | +$10-30 per pair |
📅 Tariff Timeline
🎯 Retaliation — US Products Targeted
| US Product Targeted | US Exports at Risk | Estimated Loss |
|---|---|---|
| No formal retaliation — nickel access used as leverage | N/A | N/A |
💡 Did You Know?
- •Indonesia controls over 50% of global nickel production — the #1 mineral for EV batteries
- •Indonesia's nickel export ban forced Tesla, Ford, and other EV makers to build processing plants in the country
- •With 280 million people, Indonesia is the world's 4th most populous country and fastest-growing ASEAN economy
- •Indonesian palm oil is in approximately 50% of all products on US supermarket shelves