Thursday, 07 August 2025 11:32

Indonesia Signs Deal with 0% Import Tariff on Copper from the US

Minister of Investment and Downstreaming/Head of the Investment Coordinating Board (BKPM), Rosan Perkasa Roeslani, revealed that Indonesia has successfully agreed on a 0% copper import tariff with the United States. The Indonesian government is also working to negotiate tariffs for several other commodities, such as nickel and palm oil. Rosan said that in addition to agreeing to reduce the reciprocal tariff imposed by US President Donald Trump from 32% to 19%, Indonesia has also secured a 0% tariff on copper. "For some goods or commodities that cannot be produced in the US, the tariff can be lower than that [19%). Coincidentally, for copper, we have 0%, and this has been agreed upon," Rosan said at the Indonesia-Japan Executive Dialogue 2025 in Jakarta, Wednesday (August 6, 2025). Rosan continued, explaining that the 0% tariff on copper will be the same as the reciprocal import levy, effective August 7, 2025. He explained that the government is also negotiating with the US Trade Representative (USTR) regarding other commodities. Rosan mentioned that several commodities proposed by Indonesia for tariff reductions include nickel, palm oil (CPO), and others.

Rosan is optimistic that the tariff reductions for these commodities will be approved by the US. He stated that the negotiation process is still ongoing. "It seems that nickel and others will also be approved, perhaps not at 0%, but well below 19%," he said. Previously, Trump had imposed a 50% import tariff on all semi-finished copper products entering the US. However, he excluded refined copper from the policy, thus protecting the domestic industry from potential spikes in production costs. According to an official White House fact sheet, the tariffs will take effect on August 1, 2025. US market participants had previously expected that raw copper—a key raw material for cables, construction components, and automotive components—would be subject to duties. The tariffs, imposed under Section 232 of the Trade Expansion Act, will not be added to the auto tariffs Trump imposed earlier this year. 

Source:
https://market.bisnis.com/read/20250806/94/1900062/deal-ri-dapat-tarif-impor-0-tembaga-dari-as 

 

 

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