US President Donald Trump announced on Tuesday (15/7/25) that the United States has reached a trade agreement with Indonesia, lowering tariffs on Indonesian goods from 32 percent to 19 percent, while eliminating tariffs and non-tariff barriers on US exports, according to reporting from Asia Today.
This marks the third major trade pact under Trump’s reciprocal tariff strategy, following agreements with the United Kingdom and Vietnam since his sweeping tariff announcement on April 2.
The newly agreed 19 percent tariff on Indonesian goods is a sharp reduction from the previously planned 32 percent, which Trump had communicated to Indonesian President Prabowo Subianto in a letter earlier this month
Asia Today is reporting that the deal includes commitments by Indonesia to purchase USD 15 billion worth of American energy products and to buy 50 Boeing aircraft, mostly 777 models. It also grants what Trump called “Complete and Total Access” for US agricultural and seafood exports to Indonesia’s market of 280 million people.
“American farmers, ranchers, and fishermen now have full and complete access to the Indonesian market for the first time,” Trump posted on Truth Social and reiterated to reporters before departing for Pittsburgh.
However, the new 19 percent rate is unlikely to apply to certain products like copper, which will remain subject to a separate 50 percent tariff starting August 1, says Asia Today.
Although the total trade volume between the US and Indonesia remains below USD 40 billion, ranking outside the top 15 US trade partners, it has shown steady growth. According to Reuters, US exports to Indonesia rose 3.7 percent last year, while imports increased 4.8 percent, resulting in a USD 18 billion goods trade deficit for the US.
Trump added that any goods rerouted through Indonesia will still be subject to additional duties beyond the 19 percent tariff.
The timing of the agreement is noteworthy as President Prabowo Subianto continues to intensify his engagement with non-US partners.
On July 13, he met with European Commission President Ursula von der Leyen in Brussels, reaching a political agreement on a Comprehensive Economic Partnership Agreement (CEPA) that will eliminate tariffs on 80 percent of goods within one to two years.
Just days earlier, Prabowo attended the BRICS summit in Rio de Janeiro alongside leaders from China, India, Brazil, and South Africa.
He also met with Chinese Premier Li Qiang on June 25 in Jakarta, reaffirming Indonesia’s commitment to a comprehensive strategic partnership with China and its traditional non-aligned foreign policy.
Source: Asia Today
Stock Photo by Tom Fisk on Pexels
