Bali’s cargo industry, a vital link in the island’s export-driven economy, faces uncertainty as new U.S. tariffs threaten to reshape trade dynamics. Announced in early 2025, these tariffs impose a 10% baseline duty on goods from all countries, with higher rates—up to 32%—targeting nations like Indonesia due to trade imbalances. For Bali, a hub for artisanal goods, furniture, and textiles shipped to the U.S., this could mean higher costs, reduced demand, and logistical headaches.
The U.S. is a key market for Bali’s exports, with wooden furniture and handicrafts from villages like Ubud and Gianyar finding eager buyers stateside. However, the tariffs, effective from April 5, 2025, with country-specific rates kicking in on April 9, will likely raise prices for American importers. To stay competitive, Balinese exporters may need to slash profit margins or risk losing market share. This squeeze could ripple through the cargo sector, reducing shipment volumes handled by Ngurah Rai International Airport and Benoa Port. Local logistics firms, already navigating Bali’s congested roads, might see fewer orders as exporters scale back.