Indonesian shoemakers dread Trump tariffs even with lower levy
Bandung Bootmaker Faces Uncertain U.S. Import Tolls
Indonesia’s flagship leather‑boot shop in Bandung now grapples with a new U.S. tariff that threatens to dent its long‑est trade ties with the world’s largest footwear market.
How the New Tariff Unfolds
President Donald Trump announced a 19 % import tariff on Indonesian goods—below the 32 % he had warned about in April and less steep than the 20 % tariff on Vietnamese boots.
While Indonesia pledged billions to boost energy, agriculture and merchandise imports from Washington, the ticker remains muted, with Indonesia’s President Prabowo Subianto still traveling home from a Europe visit.
Local Business Boss Shifts Strategy
- Etnawati Melani, the shop’s owner, said she needs a “new strategy.” She aims to diversify markets, products and, where possible, enter the U.S. market on a smaller scale.
- She plans to pivot focus to Japan and Russian partners, hoping to reduce reliance on U.S. sales.
Why the Tariff is a Business Killer
Indonesia is the third‑largest footwear exporter to the U.S., after China and Vietnam. A 19 % tariff would raise U.S. prices—a move that American consumers would bear the cost of, according to Center for Strategic and International Studies executive director Yose Rizal Damuri.
The tens of billions of dollars Indonesia has pledged for U.S. imports will be dwarfed by the tariff’s impact on the trade deficit, which in 2024 stood at $17.9 billion—a 5.4 % jump from last year.
Bandung Workers Brace for the Cost
Seasoned bootmaker Jajang has seen sales dip during the pandemic and has watched colleagues laid off or lose lives. He says the new levy is a worry, but his shop’s main source of income remains steady.
Worker Lili Suja‘i is already cutting a new set of boots for a Texan order—riding boots, medium casual boots and loafers—while negotiating shipping costs. “I’m worried, yes, but before placing an order we negotiate the shipping costs and prices,” she says, ready to fulfil orders from U.S. customers willing to pay the extra price.
Looking Ahead
While the exact start date for the new tariff is unclear, Indonesian officials remain muted. Chief negotiator Airlangga Hartarto calls recent talks “positive,” and Jakarta may still seek to rethink its trade surplus with Washington, according to Prabowo’s comment after the initial tariff threat in April.
For now, Bandung’s bootshop stands at a crossroads: adapt to the new tariff, diversify markets, and keep crafting leather boots that have won international acclaim.
