Trump's 10% Tariff Creates Global Trade Risks, Says Expert

February 23, 2026 | 07:16 pm

TEMPO.CO, Jakarta - Syafruddin Karimi, a Professor at the Faculty of Economics and Business at Andalas University, assessed that the 10 percent import tariff policy announced by U.S. President Donald Trump as a source for new uncertainties in global trade. According to him, the quick response pattern of the United States government makes it difficult for businesses to set prices, calculate logistics costs, and finalize investment decisions.

"Temporary global tariffs signal that the U.S. continues to use tariffs as a pressure instrument," said Syafruddin when contacted on Sunday, February 22, 2026.

Syafruddin revealed that these temporary import tariffs signal that the United States remains committed to using trade barriers as a tool of leverage. The market, he noted, will interpret these shifts as a series of consecutive decisions that fluctuate based on domestic political calculations and trade investigation results.

The risk is considered to escalate because tariff policies often run in tandem with more selective enforcement measures triggered by specific investigations. This environment opens the possibility for certain sectors to face additional, sudden challenges without any adequate warning.

Consequently, he believes President Prabowo Subianto’s directive for the government to assess all potential risks must focus on concrete risk audits. This includes preparing procedural barriers and sectoral mitigation plans so that tariff uncertainties do not evolve into regulatory uncertainties that pressure Indonesian businesses.

President Prabowo asked the government to evaluate all potential risks after the Supreme Court of the United States invalidated President Trump’s reciprocal tariff policy. The request was conveyed by Coordinating Minister for Economic Affairs Airlangga Hartarto to reporters in Washington D.C. on Saturday, local time.

Airlangga stated that the government had reported these developments to the President and was subsequently asked to prepare various response scenarios. He mentioned that the potential outcomes of the U.S. Supreme Court decision had been discussed with the Office of the United States Trade Representative (USTR) before Indonesia signed its trade agreement with the United States.

The U.S. Supreme Court, on Friday, February 20, 2026, ruled in a 6:3 decision that President Donald Trump lacked the authority to impose global tariffs based on the International Emergency Economic Powers Act (IEEPA). However, shortly after the ruling was announced, Trump countered by announcing a new 10 percent global import tariff.

Airlangga explained that the court's decision also included the cancellation of previous global tariffs and the reimbursement of fees to several corporations. However, the government ensured that the bilateral agreement between Indonesia and the United States continues to function in strict accordance with agreed mechanisms.

The implementation of the trade agreement becomes effective 60 days after signing, during which each party consults with relevant institutions, including potential discussions in the U.S. Congress and the Indonesian House of Representatives.

In the agreement, Indonesia requested the 0 percent tariff scheme for a number of commodities, especially agricultural products like coffee and cocoa, which are currently regulated via executive order. The 0 percent tariff scheme also includes parts of the industrial supply chain, such as electronics, crude palm oil (CPO), textiles, and other related products.

The government is now awaiting developments over the next 60 days, including further decisions by U.S. authorities regarding countries that have already signed the agreement. Airlangga affirmed that there will be a clear differentiation in policies between nations that have signed the agreement and those that have not. The government also considers the 10 percent tariff, which remains valid temporarily for 150 days, to be an improvement over the previous trade position.

Read: Prabowo Orders Review of US Court Ruling on Trump's Tariffs

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