Exporters and manufacturers across Indonesia are starting to feel the effects of Trump's reciprocal tariffs, with local producers having to reduce production and operation costs to offset the tariffs. The Southeast Asian country manufactured and exported roughly 2.4 billion U.S. dollars' worth of footwear products to the U.S. in 2023. One manufacturer in the country produces 60,000 pairs of shoes worth 1.8 million U.S. dollars per month and export them to the American market. Most of what the company makes are end-products of ready-to-wear shoes manufactured in Tigaraksa, Banten Province. "Our main exports to the United States are for American brands like 'Oakley' and 'Lift'," said Edwin Tanjung, head merchandiser of footwear manufacturer Aggiomultimex International Group, which produces rugged boots and aviation boots for those brands. However, the recent 32 percent U.S. tariffs slapped on Indonesian imports are worrying local businesses as customers ask for goods to be shipped earlier or even discuss the possibility of reduced prices. Manufacturers are now cutting production and operation costs as they brace for more uncertainty. "If the tariffs stay the same, this will put a burden on the footwear industry. We know that the American market is huge, with a large population and purchasing power," said Tanjung. Fithra Faisal, chief economist of securities and investment company Samuel Sekuritas Indonesia, said that the tariffs will compound the problems Indonesia's economy had already been facing. "Without the Trump tariffs, we are expecting 200,000 people being laid off this year. Maybe with this tariff ongoing we (may) have an additional 50,000 people (laid off)," said Faisal. Last year, the country saw 94,000 layoffs. However, Indonesian producers can at least take comfort in the fact that they face lower levies than neighboring countries. "We are hoping to get potential customers that plan to relocate their factory here to Indonesia from Vietnam and Cambodia - which has a slightly higher tariff," Tanjung said. Analysts believe that most ASEAN countries are not ready to have a trade war and are unwilling to retaliate, leaving these countries open to negotiation as an option. "Because this is reciprocal tariffs, reciprocity means that we can also sell them more of our textiles or CPOs (crude palm oils) at the expense of our importing their defense equipment, soybeans, wheat," Faisal said. The Indonesian Government says it will continue to negotiate with the U.S. with hopes of reducing or even removing tariffs and other trade barriers. SHOTLIST: Jakarta, Indonesia - Recent 1. Various of staffers working in workshop of footwear manufacturer; 2. SOUNDBITE (Bahasa Indonesia) Edwin Tanjung, head merchandiser, Aggiomultimex International Group: "Our main exports to the United States are for American brands like 'Oakley' and 'Lift'."; 3. Various of Tanjung inspecting boots in workshop; 4. Various of staffers working in workshop; 5. SOUNDBITE (Bahasa Indonesia) Edwin Tanjung, head merchandiser, Aggiomultimex International Group: "If the tariffs stay the same, this will put a burden on the footwear industry. We know that the American market is huge, with a large population and purchasing power."; 6. SOUNDBITE (English) Fithra Faisal, chief economist, Samuel Sekuritas Indonesia: "Without the Trump tariffs, we are expecting 200,000 people being laid off this year. Maybe with this tariff ongoing we (may) have an additional 50,000 people (laid off)."; 7. Staffers in workshop; 8. SOUNDBITE (Bahasa Indonesia) Edwin Tanjung, head merchandiser, Aggiomultimex International Group: "We are hoping to get potential customers that plan to relocate their factory here to Indonesia from Vietnam and Cambodia - which has a slightly higher tariff."; 9. Various of staffers in workshop; 10. SOUNDBITE (English) Fithra Faisal, chief economist, Samuel Sekuritas Indonesia: "Because this is reciprocal tariffs, reciprocity means that we can also sell them more of our textiles or CPOs (crude palm oils) at the expense of our importing their defense equipment, soybeans, wheat."; 11. Various of traffic, street scenes. [Restrictions: No access Chinese mainland]