On Tuesday, the White House released new details of an agreement between the U.S. and Indonesia on trade.
According to RVIA, Indonesia will eliminate approximately 99% of tariff barriers for a full range of U.S. industrial and U.S. food and agricultural products exported to Indonesia.
The United States will reduce to 19% the reciprocal tariffs, as set forth in Executive Order 14257 of April 2 on originating goods of Indonesia. The agreement said the U.S. might identify certain commodities that are not naturally available or domestically U.S. produced for a further tariff rate reduction.
Indonesia is key to the RV industry because of the lauan plywood imported from the country by RV manufacturers. The U.S. is conducting an investigation into wood products, including lauan, to determine whether imported wood products pose a national security threat to the U.S. If the Commerce Department’s investigation determines there is a national security threat, additional tariffs may be levied on wood products imports.
In the coming weeks, the U.S. and Indonesia will negotiate and finalize the agreement
A fact sheet and joint statement regarding the trade agreement have been posted.
Click here to visit RVIA’s Tariff Tracker.
