Trump Announces Tariff Deal with Indonesia, Raising Trade Hopes

Fri Jul 18 2025 02:24:56 GMT+0300 (Eastern European Summer Time)
Trump Announces Tariff Deal with Indonesia, Raising Trade Hopes

The US President claims a new agreement with Indonesia includes reduced tariffs and increased access for American firms, despite uncertain details from Jakarta.


President Trump has reportedly reached a tentative tariff agreement with Indonesia, lowering proposed tariffs on US imports and promising expanded market access for American companies, though official terms remain unverified by Indonesia.



US President Donald Trump has claimed to have struck a new tariff deal with Indonesia aimed at lowering trade barriers and enhancing market access for American firms. During a press conference, Trump announced that he had reduced the threatened tariffs on goods from Indonesia to 19%, in return for what he described as "full access" for US businesses.

The specifics of this agreement remain unclear as Indonesian officials have not publicly confirmed the terms of the deal. This trade engagement reflects the ongoing efforts of the Trump administration to navigate a complex landscape of international tariffs following a series of aggressive duties announced earlier this spring.

Following a significant pause on previous tariff threats, Trump has recently reignited tensions by sending warning letters targeting multiple trade partners, including key players such as the European Union, Canada, and Mexico. Indonesia was among those notified last week about the potential for a 32% tariff on its exports, a move that reportedly caught many officials off guard as they believed a mutual agreement was close at hand.

According to Trump, the new pact includes Indonesia's commitment to reduce its tariffs on US products, notably agricultural goods and some manufactured items. "They are going to pay 19%, and we are going to pay nothing ... we will have full access into Indonesia," Trump stated, adding that Indonesia has agreed to purchase $15 billion in US energy, $4.5 billion in American agricultural products, and 50 Boeing jets.

While these figures reflect substantial trade activity, analysts suggest that the benefits of this arrangement for Indonesia may be more political than economic. Stephen Marks, an economics professor, noted that although the US is a key importer of Indonesian goods such as electronics and palm oil products, their overall trade relationship does not rival that of other Asian partners.

This recent development follows agreements made by the Trump administration with other nations, including the UK, China, and Vietnam, which similarly left high tariffs in place while unresolved issues lingered. Economic advisor Everett Eissenstat anticipates that more trade agreements will be unveiled soon, though he pointed out that expectations among countries have shifted in light of recent negotiations.

In a rapidly changing landscape of international trade, leaders across the globe appear to be reassessing their positions, with Canadian Prime Minister Mark Carney suggesting that previously unthinkable tariff levels may now be accepted. "For governments, I think it's best to be at the negotiating table rather than to walk away," Eissenstat added, signaling a preference for diplomacy even amidst challenging negotiations.

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