WPB: In a bid to persuade Washington to ease a proposed 32% tariff on its exports, Indonesia—the largest economy in Southeast Asia—is preparing to offer the United States a deal involving an additional $10 billion in purchases of American crude oil and liquefied petroleum gas (LPG).
This tariff, among the steepest introduced during President Donald Trump’s “liberation day” trade measures, was temporarily halted for a 90-day period. During this window, the Trump administration expects affected nations to come forward with pledges to ramp up imports of U.S. goods, aiming to avoid the heavy tariffs altogether.
Indonesia’s Energy Minister, Bahlil Lahadalia, shared with national outlets that the Energy Ministry has advised boosting the import limits on American LPG and ramping up crude oil purchases from the U.S.
By adding $10 billion in energy imports, Indonesia intends to raise its total purchase value of U.S. products to somewhere between $18 billion and $19 billion. This move is aimed at balancing its trade surplus with the United States, hoping that such a commitment will convince Washington to withdraw the proposed duties.
A delegation of Indonesian officials is set to travel to the U.S. to hold discussions on the tariff issue and negotiate potential energy-based solutions.
According to Kpler’s statistics, Indonesia’s crude oil imports from the U.S. averaged only about 13,000 barrels per day last year—just a small fraction of the country’s total daily crude imports of 306,000 barrels.
Indonesia isn’t alone in seeking tariff relief through energy deals. Other nations are also exploring similar strategies. Pakistan, for example, is considering bringing in American crude oil for the first time as a step toward reducing its own trade imbalance with the U.S.
Meanwhile, South Korea is reportedly evaluating a rise in LNG imports to prompt a rollback of the U.S. tariffs, and India is contemplating the elimination of its import tax on U.S. liquefied natural gas as a way to enhance American LNG imports and address its trade surplus with Washington.
By WPB
LNG, Crude, Oil, Bitumen
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