Jakarta, August 26, 2025 – The implementation of export tariffs by Trump, as part of the America First policy, has had a significant impact on Indonesia’s seafood product market. Last April, Trump introduced a global reciprocal tariff policy of 10%. Since the announcement of the 10% tariff, companies exporting tuna loin products to the United States have halted production. This policy has led to layoffs (PHK) among fish processing workers in Indonesia.
In mid-2025, Trump sent letters to several countries, including Indonesia, imposing a tariff of 32%. Over time, this tariff was reduced to 19% for Indonesia—1% lower than the rate imposed on products from Vietnam. This tariff has affected Indonesia’s fisheries economy, considering that the US has been the main export market for Indonesian seafood products, with a total value reaching USD 1.90 billion in 2024, or about 32% of total seafood exports.
In response, Destructive Fishing Watch (DFW) Indonesia conducted a limited survey on The Impact of Trump’s Tariffs on Indonesia’s Fisheries Economy from July 22 to August 6, 2025. The survey included various business actors, stakeholders, and relevant practitioners. From the survey, 82.5% of respondents agreed that Indonesia’s seafood export market is heavily dependent on the United States. This dependence has affected several commodities such as shrimp, tuna, mackerel (tongkol), and skipjack (cakalang). According to respondents, the increased export tariff will lead to a decline in export performance, disruptions in the supply chain, and reduced investor interest.
Based on the DFW survey, Trump’s tariffs are also expected to widen the trade balance gap in favor of the United States. A majority (67.5%) of respondents linked this imbalance to the potential rise in inflation in Indonesia. Inflation is anticipated due to higher export prices to the US (due to the 19% tariff), while American imports to Indonesia remain tariff-free (0%).
According to Luthfian Haekal, Human Rights Manager at DFW Indonesia, the impact on several fishery export commodities will also affect employment in fish processing plants. A separate 2025 DFW survey found that Trump’s export tariffs led to layoffs in several fish processing regions in Indonesia. “In Bitung, for example, a company producing tuna loin laid off around 60%–80% of its workers,” he stated.
Therefore, Haekal emphasized the need for a diversification strategy for Indonesia’s fishery export markets. One potentially effective strategy, according to survey respondents, is to strengthen cooperation with BRICS member countries. On the other hand, 72.5% of respondents also believe that the government has already been assisting businesses in diversifying their export markets. Countries identified as potential export destinations include China, Europe, and the United Arab Emirates. Diversification aims to reduce the risks associated with reliance on a single market.
“The government must at least strengthen export structures. This can be achieved by expanding non-US export markets through bilateral or multilateral trade agreements in alternative regions and facilitating product promotion in countries with low or zero tariffs,” said Haekal.
Beyond market diversification, Haekal also pointed out that Trump’s tariffs present an opportunity to develop import substitution goods—a move supported by 87.5% of respondents. In the context of developing import substitutes within a circular economy framework, empowering local economic potential is key. However, a major challenge lies in low consumer purchasing power, which 62.5% of respondents believe is still insufficient. The majority of business owners also share this view. “About 58% of the 19 businesses we reached believe that consumer purchasing power remains too weak to afford the goods they produce,” Haekal explained.
