United States President Donald Trump announced tariff increases on imported goods entering the US. This tariff increase applies only to countries that have a large trade surplus with the US, one of which is Indonesia. The US tariff imposed on Indonesia is 32 percent.

The impact of this tariff increase will affect many imported goods, including furniture and crafts.

According to Abdul Sobur, Chairman of the Indonesian Furniture and Craft Industry Association (HIMKI), numerous impacts will emerge. The most noticeable impact in the near term will be that furniture and crafts currently being shipped to the US will likely be held up at ports until April 9, 2025, and beyond.

"Fifty-three percent of our exports are to the United States, with the rest going to Europe and other countries in Asia. So, of course, the journey of goods at sea, those that have just departed, and containers, will be impacted. This is because the journey takes a month, in the field, at sea. Once we arrive there, the price has changed," Abdul told detikProperti on Friday (April 4, 2025).

These items will only be marketed and delivered to buyers once the latest tax is paid. Meanwhile, some orders may have been shipped before the tax increase was passed, and prices have not yet changed.

"So, like it or not, they have to spend money to pay that (tax). Otherwise, the goods won't be able to enter America and will be held up at the port," he said.

Another impact of this tariff increase is a decline in Indonesian furniture and craft exports to the US. The US market will shift to countries that sell similar goods at lower or cheaper prices.

"Indonesian forest products and furniture exported to the US will face higher costs. This will significantly reduce the competitiveness of Indonesian furniture products in the US market," he explained.

According to HIMKI data from recent years, Indonesian furniture and craft exports to the US declined from 2022 to 2024. The highest export value occurred in 2022, reaching US$1.9 billion, equivalent to Rp 31 trillion (exchange rate of Rp 16,756). In 2024, exports reached only US$1.3 billion, equivalent to Rp 21 trillion.

"There's a decline because there's been a downward trend in travel to America. Plus, with tariffs now in 2025, it's certain to drop even further," he explained.

The furniture items that are mostly sent from Indonesia to the US are mostly made of wood, around 65 percent, then there are those made of rattan, around 13 percent, and the rest are made of plastic and synthetic wicker.


Source: Detik