JakartaGlobe-Feb 25, 2026
The US Supreme Court’s decision to invalidate the original legal basis of President Donald Trump’s tariff policy against several countries, including Indonesia, has injected fresh uncertainty into bilateral trade relations.
Amid the uncertain legal landscape, Indonesia is seen as relatively better positioned, having entered negotiations earlier, according to Fitra Faisal Hastiadi of the Government Communications Agency (Bakom RI). “When the Supreme Court ruled it out, President Trump immediately exercised the 1974 Trade Act. Why can Section 122 be implemented immediately? Because it does not require a federal investigation,” Fitra said.
In response to the Supreme Court ruling, Trump imposed a temporary 10% tariff on all global imports. He had threatened to bring in a 15% rate, but the lower rate took effect on Tuesday. It will remain in place for 150 days, at which point Trump is expected to consult Congress on any extension. What will happen to the 19% tariff under the Agreement on Reciprocal Tariff (ART) scheme, which was signed on Friday just hours before the Supreme Court ruling? According to Fitra, the status of the 19% tariff is now in a legal gray area, as its original basis—IEEPA, has been annulled. However, another legal view suggests that once an international agreement has been signed, it may still proceed. The complication lies in Article 7 of the Agreement on Reciprocal Tariff, which requires domestic ratification by both parties. In Indonesia, this would involve deliberation with the House of Representatives (DPR), while in the US, it must pass through Congress. “So, the probability of it not taking effect is quite significant,” he said. For now, the tariff under Section 122 remains the most certain framework, while the 19% rate hinges on political dynamics and ratification processes in both countries. Read more at:
