"Indonesian textile industry hit hard by tariffs, suggest ramping up US cotton imports", 15 April 2025

With 40 per cent of Indonesia’s textile and clothing exports going to the US market, the country’s textile sector is expected to be one of the most severely impacted by the recent tariff increases in the US.

Industry participants caution that a 32 per cent so-called “reciprocal” tax that will be applied to Indonesian imports after a 90-day pause for bilateral talks ends may “accelerate layoffs” in a sector that was already having difficulties before the policy was introduced.

Associations representing the textile sector have proposed boosting imports of US-sourced raw materials, such as cotton, as a negotiating tool to balance bilateral trade, maybe reduce the impending tariff, and safeguard the home market by limiting imports...

Indonesia is currently the fifth-largest supplier of textiles and clothing to the United States...

Textile groups counter that it won’t be simple to leave the US. The US continues to be a vital market as the world’s largest consumer of textile goods, supported by its enormous economy.

Exporting to other significant textile producers, such as China, India, Vietnam, and Bangladesh, is not a feasible option since those nations apply their own trade obstacles to protect domestic businesses, said Ian Syarif, deputy chairman for industrial affairs at the API.