By John Q. Hosedrinker 
US trade talks with Indonesia, currently at nearly $40 billion in 2024, show growing US exports and imports. Senior Indonesian officials confirmed they are preparing a joint statement regarding tariffs, following Trump’s threat of a 32% tariff rate and similar letters sent to other trading partners. Trump has stated that talks with India are moving in a similar direction and that a trade deal with Vietnam is nearly complete. The implementation of these tariffs would raise the US effective average tariff rates, potentially making it the highest since 1933.
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Trump sets 19% tariff on Indonesia goods in latest trade deal. Well, isn’t this a pickle? A 19% tax on goods imported from Indonesia, courtesy of the latest… well, let’s just say “agreement.” The word “deal” is getting a serious workout these days, isn’t it? It’s like someone getting a swift kick in the financial pants and being told it’s a “minor inconvenience.” The official line, as usual, seems to be that Indonesia will be the one paying, and that Americans will be spared the cost. Right.
They’re going to pay 19%, we pay nothing, and everyone’s supposedly happy. It’s a classic Trump maneuver, really. The man sets the rate, and then, claims it’s a win-win. The reality, though, is likely far simpler. It’s more like Trump is setting a tariff and telling Indonesia, “Here’s what you’re going to do.” Indonesia recently entered a free trade agreement with the EU and is part of BRICS. This may well have been used as leverage to push for a smaller tariff. Aside from beef, American products are often way too expensive for Indonesian consumers, even before any potential import taxes.
The bottom line is that American consumers are looking at paying nearly a fifth more for some Indonesian goods. Palm oil products, for example, are going to be a joy. The question isn’t whether it’s a good deal, but how this is even framed as such.
Let’s call a spade a spade: It’s a tax on American consumers, plain and simple. Indonesia isn’t footing the bill. Inflation is a likely outcome, as importers will try to pass these added costs onto buyers. And while some might cheer about the idea of “making America great again,” the reality is that this feels more like a step back into some bygone economic era.
And speaking of the economy, it’s not exactly booming, is it? The jobs market is struggling, the dollar’s weakening, and even the much-touted Brexit is hitting bumps. All this while slapping new tariffs on everything. The recent CPI numbers are already up and things are only projected to get worse. The idea that you can tax your way to prosperity is, at best, a bit optimistic. At worst, it’s going to hurt the entire nation with broad tariffs that seem pulled from thin air.
It’s not about a deal; it’s about tariffs on and off, on and off, a continuous loop. And for what? Higher prices for everyone. The endless cycle of “tariffs” reported as “news” is exhausting. This looks less like a calculated trade strategy and more like the whims of a man making it up as he goes. You get a tariff! You get a tariff! Everybody gets a tariff!
And here’s the thing: Trump can change the rate anytime he wants. The USA is not exactly a reliable trade partner, especially when both sides are forced to buy less. So much for the “deals.” It’s just a tax increase for American consumers.