Trump maintains 19% tariffs on Indonesia in new framework deal
President Donald Trump announced details of a new trade framework deal between the United States and Indonesia ahead of a self-imposed August 1 deadline for trade partners. Under the agreement, Indonesia will open its market to American industrial, technology, and agricultural products by eliminating 99% of their tariff barriers. In exchange, Trump reduced U.S. tariffs on Indonesian imports from 32% to 19%.
The deal also includes Indonesia supplying critical minerals to the U.S. and committing to large purchases of Boeing aircraft, American farm products, and energy, valued at tens of billions of dollars. Additionally, Indonesia agreed to accept U.S. federal motor vehicle safety standards, remove export restrictions and pre-shipment inspection requirements, and recognize U.S. FDA certifications for medical products.The country also dropped efforts to tax internet data flow and supported a permanent moratorium on customs duties on electronic transmissions.
According to the Trump administration, this deal is expected to provide at least $50 billion in new market access and purchases for U.S. goods, benefiting American automakers, tech firms, workers, farmers, ranchers, and manufacturers. Trump has also announced similar trade agreements with the Philippines, Vietnam, and the United Kingdom, maintaining a strategy of imposing high tariffs if new trade deals are not secured by the set deadline.
Trump maintains 19% tariffs on Indonesia in new framework deal
President Donald Trump announced further details of the trade deal between the United States and Indonesia brokered this month on Tuesday, ahead of a self-imposed Aug. 1 deadline that was imposed on U.S. trade partners.
“It is agreed that Indonesia will be Open Market to American Industrial and Tech Products, and Agricultural Goods, by eliminating 99% of their Tariff Barriers,” Trump wrote on Truth Social.
Indonesia initially agreed to drop its tariffs on U.S. exports to zero percent when Trump teased the agreement last week. In return, Trump lowered his “Liberation Day” tariffs against Indonesia to 19% after it was previously targeted for 32% tariffs.
New details from the administration gave more clarity on the framework:
“Indonesia will supply the United States with their precious Critical Minerals, as well as sign BIG Deals, worth Tens of Billions of Dollars, to purchase Boeing Aircraft, American Farm products, and American Energy,” Trump posted. “This Deal is a HUGE WIN for our Automakers, Tech Companies, Workers, Farmers, Ranchers, and Manufacturers.”
In addressing non-tariff barriers on the U.S. exports, Indonesia has agreed to accept U.S. federal motor vehicle safety standards, remove export restrictions on critical minerals, remove pre-shipment inspection or verification requirements on imports of U.S. goods, and will exempt U.S. companies from local content requirements, a senior administration official told reporters earlier on Tuesday.
They’ve also agreed to accept U.S. Food and Drug Administration certificates, prior marketing authorizations for medical devices and pharmaceuticals, to drop an effort to tax the flow of internet data, and support a permanent moratorium on customs duties on electronic transmissions at the World Trade Organization.
“Today’s deal is significant because it shows exactly how the president is resetting the terms of trade to ensure that we can reduce our deficit, both by regulating imports and also expanding exports,” a senior Trump administration official told reporters.
“All told, this deal is worth at least $50 billion to the United States in terms of new market access, as well as purchases that Indonesian companies intend to make [on] U.S. goods,” the official added.
Trump claimed that Indonesia had previously committed to purchasing $15 billion in U.S. energy, $4.5 billion in American agricultural products, and 50 Boeing Jets.
Trump attempted to reset U.S. trade deals with foreign partners earlier this year when he announced his so-called “reciprocal tariffs.”
TRUMP ANNOUNCES TRADE AGREEMENT WITH PHILIPPINE PRESIDENT AFTER WHITE HOUSE MEETING
The president also announced a new trade deal with the Philippines after President Ferdinand “Bongbong” Marcos Jr. visited the White House on Tuesday. Under the agreement, the Philippines will pay a 19% tariff. Trump has also negotiated deals with Vietnam and the United Kingdom.
Trump has threatened high tariffs on exports to foreign trade partners on Aug. 1 if new agreements are not reached.
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