Trump Secures Tariff Agreement with Indonesia

U.S. President Donald Trump announces a new tariff deal with Indonesia, marking a shift in trade relations.

In a bid to strengthen trade ties, President Trump revealed a new tariff arrangement with Indonesia, aimed at reducing duties on imports and promising increased access for U.S. firms.


U.S. President Donald Trump has announced that a new tariff agreement has been reached with Indonesia, positioning the deal as a significant advancement in trade relations between the two nations. In his latest statements, Trump confirmed that the tariffs he had previously threatened on Indonesian goods entering the United States would be reduced to 19%. In exchange, he claimed, Indonesia has granted "full access" for American companies to operate within its markets.

The specific terms of this agreement remain to be officially validated by Indonesia, which has been navigating its growing trade relationship with the U.S. amidst previous fluctuations in tariffs. Following the administration's introduction of numerous tariffs earlier this spring, the urgency for new agreements has increased.

After initially suspending some more aggressive tariff proposals earlier this year, Trump has reissued warnings to multiple countries, outlining intentions to implement high tariffs starting August 1. This warning list includes major trading partners such as the European Union, Canada, and Mexico, alongside Indonesia, which had recently received a notification of a possible 32% tariff on its exports—leaving officials in Jakarta surprised given their expectations of an upcoming deal.

In his remarks to reporters, Trump emphasized the terms, stating that Indonesian products would be subject to a 19% tariff, while U.S. exports would enter the country tariff-free. Furthermore, he indicated that Indonesia had committed to purchasing $15 billion worth of American energy resources, $4.5 billion in agricultural products, and has agreed to buy 50 Boeing jets. However, these values appear to be lower than those previously discussed in trade negotiations that had been reported by Reuters.

Alongside Indonesia, the Trump administration has announced agreements with the United Kingdom, China, and Vietnam, although many of these deals have also been marked by continuing high tariffs from the U.S. and unresolved core issues.

Economic advisor Everett Eissenstat expressed anticipation for more trade deals to be unveiled in the coming weeks, observing a shift in negotiating tones among countries. Citing Canadian Prime Minister Mark Carney's recent comments regarding tariff acceptance, he noted a growing readiness among nations to reconsider their expectations in trade discussions.