Trump Tariff War: Norway Calls on Indonesia to Maintain Global Trade System

Jayanty Nada Shofa
May 6, 2025 | 1:46 pm
SHARE
US President Donald Trump listens to Norwegian Prime Minister Jonas Gahr Store during a bilateral meeting in the Oval Office of the White House on April 24, 2025 in Washington. (AP Photo/Mark Schiefelbein)
US President Donald Trump listens to Norwegian Prime Minister Jonas Gahr Store during a bilateral meeting in the Oval Office of the White House on April 24, 2025 in Washington. (AP Photo/Mark Schiefelbein)

Jakarta. A senior Norwegian diplomat called on Indonesia to help maintain the global trade system as US President Donald Trump’s tariffs led to a major upheaval across the world's economies.

Norway, a country that will get hit by Trump’s 15 percent import tax, has sent its Deputy Foreign Minister Andreas Motzfeldt Kravik to Jakarta. His first order of business: marking ASEAN-Norway’s 10 years of relations. But on the sidelines of his Jakarta trip, Kravik told the press that he would be meeting representatives from Indonesia’s Foreign Affairs Ministry. As expected, the ongoing trade war and its implications became an inevitable topic.

“[We will discuss] our commitment to multilateralism, human rights, and international law. We’ll talk about the importance of sustaining and maintaining the global trade system, which is vital not just for our economy, but also for Indonesia and ASEAN,” Kravik told the press. 

US reciprocal tariffs on Norway are only about half of what Indonesia is about to get. Starting in July, goods imported from Indonesia will be subject to a 32 percent levy if they wish to enter the American market. Imports from Indonesia, Norway, and other tariff-hit countries, are bound to be more expensive for American consumers.

Advertisement

It only took a few weeks since the tariff announcement before Norwegian Prime Minister Jonas Gahr Støre flew to the White House to meet Trump. Indonesia, too, is taking the diplomatic approach by sending a high-level delegation team led by senior minister Airlangga Hartarto. President Prabowo Subianto has yet to meet Trump in person since the tariff order. Amid these negotiations, the initial 10 percent baseline tariff already took effect on US-bound goods. 

Trump Tariff War: Norway Calls on Indonesia to Maintain Global Trade System
Norwegian Deputy Foreign Minister Andreas Motzfeldt Kravik holds a press conference during his Jakarta visit on May 6, 2025. (JG Photo/Jayanty Nada Shofa)

Official statistics showed that Oslo was still far from being Jakarta’s main trading partner. Indonesia-Norway trade hit $370 million in 2024, only half of what they recorded the previous year. Bilateral trade had reached $732.8 million in 2023, government data showed. Indonesia posted a $236 million surplus with Norway in 2023, but ran a deficit of around $163.3 million the following year. A surplus occurs when exports exceed imports, thus generating more revenue for Indonesia. Deficit is the other way around.

Norway is part of the European Free Trade Association (EFTA), which also unites Iceland, Liechtenstein, and Switzerland. This bloc already has a Comprehensive Economic Partnership Agreement (CEPA) with Indonesia, a treaty that abolishes all customs duties on imports of Indonesian industrial goods, including fish and other marine products. While Kravik did not talk of this treaty, a Polish envoy recently said that he hoped businesses could take a better advantage of this trade pact.

“I hope we make better use of the [Indonesia-EFTA CEPA] agreement to increase trade relations, with or without US tariffs,” Swiss Ambassador to Indonesia Oliver Zehnder told the Jakarta Globe.

Tags: Keywords:
SHARE

Related Articles


Business May 6, 2025 | 1:46 pm

Trump Tariff War: Norway Calls on Indonesia to Maintain Global Trade System

Norway, a country that will get hit by Trump's 15 percent import tax, wants Indonesia to help maintain global trade system.
Business Apr 17, 2025 | 3:33 pm

Indonesia’s Property Market Stays Resilient Amid Escalating US-China Trade War

The sustained demand is supported by Indonesia’s growing urban population and the increasing need for housing in major cities.
Business Apr 17, 2025 | 11:45 am

Indonesia Tells US It Has Made Foreign Investment Easier as Tariff Talks Begin

Foreign Affairs Minister Sugiono meets US Secretary of State Marco Rubio as the reciprocal tariff talks begin.

The Latest


Business 4 hours ago

Indonesian Sovereign Fund Danantara to Partner with China, Japan, Malaysia

Danantara's boss Rosan Roeslani says that the fund will sign the agreement in the coming weeks.
Business 5 hours ago

Bank Indonesia Cuts 2025 Growth Forecast After Weak Q1 Performance

Bank Indonesia cuts 2025 growth forecast to 4.6–5.4 pct due to weak Q1 data and global slowdown, urges stronger domestic demand policies.
Business 6 hours ago

It Can Be Hard for ASEAN to Set Common Negotiation Plan on US Tariffs

An economist says that each ASEAN member is at a different stage of development, making a common US tariff negotiation plan impossible.
News 6 hours ago

Tone-Deaf Rice Comment Costs Japan's Minister His Job

Japan's farm minister resigns after saying he never buys rice, triggering public backlash as prices soar and elections loom.
Business 6 hours ago

Bank Indonesia Cuts Benchmark Rate by 25 Basis Points to 5.5 Pct

Bank Indonesia cuts benchmark rate by 25 bps to 5.5% to support growth, citing stable inflation and manageable rupiah pressures.
COPYRIGHT © 2025 JAKARTA GLOBE. ALL RIGHTS RESERVED