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Indonesia banks on EAEU as US tariffs squeeze export

Under the Agreement on Reciprocal Trade (ART), Indonesian garments will be subject to a ** per cent duty. The US’ exemptions are primarily for “natural resources”, such as palm oil, while manufactured exports will not benefit. This is especially concerning for the sector that has relied on the US as its main market.

The textile industry has expressed alarm over these developments, even as industry representatives reportedly warned that Indonesian garment makers risk being priced out of the US market as reciprocal tariffs could push product prices significantly higher than those of regional competitors.