Amid the clatter of sewing machines, 62-year-old Deddy Mulyadi faces a critical moment. The garment factory he's managed for 27 years must try to weather the storm caused by Trump's 19% export tariffs deal between the U.S. and Indonesia.

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Donald Trump has signed an order to impose tariffs imports into the U.S. from countries including China, Mexico and Canada.

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An Indonesian garment factory owner, Daddy Mulyadi, is facing uncertainty after the U.S. imposed a 19 percent tariff on Indonesian goods, matching rates for the Philippines and slightly lower than Vietnam. The U.S. is Indonesia's largest market for garments, but the new tariffs have led to order cancellations and disrupted business estimates.

While some analysts suggest that Indonesia could benefit if its tariffs remain lower than competitors, Mulyadi is diversifying his factory's markets to reduce reliance on the U.S. He is seeking new opportunities in the Middle East, Japan, and Europe, aiming to secure the factory's future by targeting non-American brands and markets.

Indonesian factory aiming beyond the U.S. despite a tariff deal

Surrounded by a sea of sewing machines, 62-year-old Daddy Mulyadi is contemplating uncertain times for his business in Indonesia. U.S. President Donald Trump's new 19 percent tariffs on Indonesian goods would mean a tougher fight to keep it all afloat. The brutal reality for Daddy's 27-year-old factory, like many in Southeast Asia, is that it must adapt or risk collapse. He supplies clothes to major brands like H&M, Zara, and American Eagle. He says he's already seen cancellations. All of our estimates have been thrown off. We usually export to the United States, and now with the tariff war hitting our regular market in the U.S., it's affected our margins. The U.S. is Indonesia's largest market for garments and textiles. And last year, Indonesia sent more than half of its garments exports there. The tariff rate on Indonesian goods matches the 19 percent imposed on the Philippines, while Vietnam faces a 20 percent rate. If Indonesia's tariffs stay lower than competing countries, it may mean an edge for factories seeking U.S. investment in making branded apparel. That is according to trade analyst Andri Satrio Nugroho. We know Vietnam also does the same thing, exporting their textile products to the U.S. as well as other ASEAN countries. Of course, if our prices are much cheaper than these competitors, we will become the U.S.'s destination for investing in branded product manufacturing. So, this could be an opportunity for us if the 19 percent tariffs on our products end up being the lowest among ASEAN countries. But for Daddy, clinging on to the American market alone is too risky. To survive, he set his sights beyond the U.S. to keep his factory alive. We've been looking for other brands, especially markets that are not related to America. So we're trying to reduce our focus on America. The Middle East, for example, is a huge market opportunity. And we're taking on brands that are not related to America, like those from Japan and Europe. So that's our goal, especially to look for new market prospects and start approaching countries that are not American markets.

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Indonesian factory aiming beyond the U.S. despite a tariff deal

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