Indonesian President Prabowo Subianto expressed readiness to mitigate risks from US President Donald Trump's hike of global import tariffs to 15%, announced February 21, 2026, one day after a Supreme Court ruling invalidated prior tariffs. Officials affirmed that bilateral trade negotiations continue, highlighting zero-tariff deals for key Indonesian exports.
The US Supreme Court ruled 6-3 on February 20, 2026, that President Trump exceeded his authority under the International Emergency Economic Powers Act (IEEPA) by imposing broad tariffs on imports from countries including China, Canada, and Mexico. Trump quickly responded by announcing a 10% global tariff effective February 24 under Section 122 of the 1974 Trade Act (allowing up to 15% for 150 days to address trade deficits), then raised it to 15% via social media the next day.
From Indonesia's viewpoint, President Prabowo Subianto—who met Trump in Washington DC on February 19—stated, "We are ready to face all possibilities; we respect the domestic politics of the United States." Coordinating Minister for the Economy Airlangga Hartarto confirmed the bilateral trade agreement is proceeding within a 60-day consultation involving Indonesia's DPR and US Congress. The deal, after prolonged talks, originally set reciprocal tariffs at 19% but was adjusted post-ruling. Cabinet Secretary Teddy Indra Wijaya viewed the temporary 10% rate as beneficial before the increase. Indonesia secured zero tariffs via executive order for commodities like coffee, cocoa, electronics, CPO, and textiles. The government plans to assess further risks, noting the 15% rate aligns with prior tariffs on allies like Japan and South Korea.