United States And Indonesia Sign Agreement On Reciprocal Trade

On Thursday, February 19, President Trump and President Prabowo Subianto of Indonesia signed and announced an Agreement on Reciprocal Trade (ART) between the United States and Indonesia. 

Most Notable for the RV Industry: 

• Under the terms of this deal, lauan plywood will receive ZERO reciprocal duty.
• The tariff schedule detailing this starts on page 315 at the link here.  Lauan plywood (4412.31.45 and 4412.31.48) is specifically referenced on page 354.
• Lauan plywood used in RV manufacturing possesses unique properties, particularly around weight, thickness, and adhesiveness, which are essential for the structural integrity and safety of RV units. It is a tropical hardwood plywood that only grows in certain regions (primarily Indonesia) and has no domestic plywood substitute. The industry, therefore, has had to continue to source from Indonesia despite the 19% reciprocal tariff rate that took effect in October 2025.
• Reciprocal Tariff Structure and Implementation Details:
• The United States will maintain a 19% reciprocal tariff on most Indonesian imports, a decrease from the original 32% rate.
• A yet-to-be created exemption “mechanism” for certain textile and apparel products is also included in the agreement.  
• Unique treatment of products covered by Section 232 actions is not specified in the agreement text; however, “The United States may positively consider the effect that the Agreement has on national security, including taking the Agreement into consideration when taking trade action under section 232 of the Trade Expansion Act of 1962, as amended (19 U.S.C. 1862).”
• The ART will take effect 90 days after the parties exchange written notifications confirming completion of their respective legal procedures, or on another mutually agreed date.

To read the Agreement on Reciprocal Trade, click here.

To read the Fact Sheet, click here.

To read the Tariff Schedule, click here.

This trade agreement DOES NOT alter the affirmative preliminary countervailing duty determination announced by the US Department of Commerce in January. The 43.18% countervailing duty rate that lauan providing companies began having to pay on January 22, 2026 is still in effect. It similarly will not alter any future determinations arising from that investigation.

Please contact RV Industry Association Director of Federal Affairs Samantha Rocci at srocci@rvia.org with any questions and keep up with the latest tariff updates here.