US President Donald Trump on Tuesday revealed a brand new commerce settlement with Indonesia that features a 19% tariff on Indonesian items coming into america, a part of a broader push by the administration to renegotiate commerce offers and slash the US commerce deficit. The deal additionally contains vital commitments from Indonesia to buy American items, in line with Trump.
“Indonesia can pay america a 19% Tariff on all Items they export to us, whereas U.S. Exports to Indonesia are to be Tariff and Non Tariff Barrier FREE,” Trump wrote on Reality Social, including that the US would achieve full entry to Indonesian markets. He claimed on Reality Social that Indonesia had agreed to buy $15 billion in US vitality merchandise, $4.5 billion in agricultural items, and 50 Boeing jets—although no timeline for these transactions was supplied.
A brand new commerce strategy earlier than August 1 deadline
The Indonesia deal mirrors a current framework settlement with Vietnam and is a part of Trump’s technique to impose greater tariffs until international locations strike bilateral commerce offers with the US. The administration has set an August 1 deadline after which most US import tariffs will improve until agreements are reached.
Trump had earlier warned Indonesia of a attainable 32% tariff until a deal was reached. Related letters have been despatched to over two dozen international locations, together with Canada, Japan, and Brazil, proposing tariffs starting from 20% to 50%, together with a 50% levy on copper.
Indonesia responds
In Jakarta, Susiwijono Moegiarso, a senior official with Indonesia’s Coordinating Ministry for Financial Affairs, confirmed that the 2 international locations are making ready a joint assertion detailing the tariff ranges and related commerce preparations. “We’ll inform [the public] quickly,” he informed Reuters by way of textual content message.
Whereas Indonesia isn’t a top-15 US buying and selling companion, commerce has grown steadily. In 2024, complete bilateral commerce reached just below $40 billion, with the US. working a items commerce deficit of almost $18 billion. Indonesia’s high exports to the US embrace palm oil, footwear, electronics, rubber, tires, and frozen shrimp.
As Trump’s tariff deadline looms, international markets are watching intently. The White Home has up to now secured restricted offers with the UK, Vietnam, a partial tariff truce with China, and now Indonesia—whereas main buying and selling blocs just like the EU brace for an all-out commerce conflict.
