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GAPKI sees zero tariff lifting US palm oil sales

Jakarta (ANTARA) – The Indonesian Palm Oil Association (GAPKI) expects exports to the US to climb toward 3 million tons within three years if tariffs return to zero, as trade negotiations continue following a US Supreme Court ruling on reciprocal duties.Exports to the US have more than doubled over the past five years, rising from below one million tons to above two million tons, said GAPKI Chairman Eddy Martono.“If this is managed properly and tariffs return to zero, in the next two to three years we could approach 3 million tons,” Eddy told ANTARA in Jakarta on Friday evening.GAPKI noted that the US imports significant volumes of palm oil, primarily from Indonesia, which now accounts for about 89 percent of US palm oil imports.The group also sees opportunity in a shift among some US consumers from soybean oil to palm oil, potentially supporting additional demand.GAPKI said it is awaiting further steps from the Indonesian government regarding the bilateral trade arrangement with the US.Indonesia is seeking to maintain zero tariffs on selected exports to the US even after the Supreme Court struck down reciprocal tariff measures previously imposed by President Donald Trump.Trade Minister Budi Santoso said consultations are ongoing following the court’s decision.On Feb. 19, Indonesia and the US signed a reciprocal tariff agreement granting zero-duty access to 1,819 Indonesian tariff lines.Covered products include palm oil, coffee, cocoa, spices, rubber, electronic components including semiconductors, and aircraft parts.The two countries also agreed to eliminate duties on Indonesian textiles and garments under a quota-based arrangement.A day after the agreement, on Feb. 20, the US Supreme Court ruled that Trump lacked authority under the International Emergency Economic Powers Act to impose broad global tariffs.Following the ruling, the US began applying a temporary 10 percent global tariff, with the White House planning to raise it to 15 percent.Indonesia’s Coordinating Ministry for Economic Affairs said further talks with US counterparts will follow the court’s decision.