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Indonesia relies on eggs as convincing argument in tariff ta...
14-04-2025 15:03
Indonesia relies on eggs as convincing argument in tariff talks
Indonesia relies on eggs as convincing argument in tariff talks

Just imagine how a basic grocery item can influence the political landscape! For example, chicken eggs might become a key bargaining chip in negotiations with the US over tariffs, Zulkifli Hasan, Indonesia’s Minister of Food, affirms. The Southeast Asian country has found a rock-solid argument.

It is well known that the US is currently dealing with an egg shortage. With that in mind, Indonesian authorities proposed an unusual strategic solution. Remarkably, hardly any US trade partner in history has considered eggs a negotiating tool in discussions on mutual trade tariffs.

Indonesia’s government is willing to take diplomatic steps in response to President Donald Trump’s decision to impose a 32% tariff on imports from Indonesia. “Indonesia is preparing an action plan, taking into account a range of factors including imports and investments from the US,” Zulkifli Hasan emphasized. His government believes that both countries are interested in partnership. Therefore, Jakarta will seek to avoid a trade war with the US and prevent retaliatory tariffs. Instead, the focus will remain on dialogue.

Jakarta’s key advantage is its strong potential to export eggs to the US. The United States recently faced supply issues due to an outbreak of avian flu. Indonesia, on the other hand, has an egg surplus of 5 billion per month. “It turns out that someone is short on eggs, and we have more than we need,” Hasan explained.

President Prabowo Subianto confirmed this, noting that while many other countries are struggling with egg shortages, Indonesia has managed to maintain a surplus and has begun exporting eggs. “We can export eggs. We have a glut in our market. So, prices are getting lower,” Subianto said.

Meanwhile, the egg situation in the US remains tense. Amid soaring prices, Americans have started dyeing potatoes, onions, and marshmallows for Easter instead of traditional eggs. Social media and news websites have been flooded with videos suggesting inventive alternatives to outpriced eggs.

Previously, the US Department of Agriculture had warned about a sharp increase in egg prices. At the beginning of 2025, the agency forecasted a 20% price hike, but that estimate was later revised. As it stands now, egg prices are expected to rise by an astonishing 41.1% this year. In January 2025, the average cost of eggs reached $4.95 per dozen—a 13.8% surge compared to an 8.4% rise in December 2024.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

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