The United States, under President Donald Trump, has announced new import tariffs affecting Southeast Asian countries. Indonesia faces a 32% tariff on all its products starting August 1, 2025, as communicated directly to President Prabowo Subianto via a letter from Trump. The Indonesian government has responded promptly, emphasizing that negotiations remain open and denying any deadlock in talks. Key Indonesian sectors vulnerable to the tariff include textiles, electronics, footwear, and fisheries. Meanwhile, Malaysia will be subject to a 25% tariff on its exports to the U.S. from August 1, 2025, which is an increase of one percentage point from the tariff announced in April. In response to the tariff threat and associated economic risks, Malaysia's central bank cut its benchmark interest rate by a quarter point—the first reduction in five years—to support the economy and currency. Indonesian officials, including Minister of Finance Sri Mulyani and Coordinating Minister for Economic Affairs Airlangga Hartarto, are actively engaged in negotiations with the U.S. to address the tariff measures.