Former President Donald Trump announced a trade agreement with Indonesia that reduces US tariffs on Indonesian exports from 32% to 19%. In return, Indonesia will remove tariffs on American exports and commit to major US purchases, including:
$15 billion in US energy
$4.5 billion in American agricultural products
50 Boeing jets (many 777s)
Trump first shared the deal on Truth Social and later told reporters:
“Great deal, for everybody, just made with Indonesia. I dealt directly with their highly respected President.”
Deal with Indonesia
.@POTUS on the trade deal with Indonesia: "We have FULL access to Indonesia…We will pay no tariffs. So they are giving us access into Indonesia, which we never had…They are going to pay 19%, and we are going to pay nothing." 🇺🇸🤝🇮🇩 pic.twitter.com/5k08APUrnx
“Indonesia is known for high-quality copper, which we’ll be using.”
Indonesia’s President Prabowo Subianto negotiated the deal directly with Trump, with Indonesian officials describing it as an “extraordinary struggle.” President Prabowo said the agreement marks “a new era of mutual benefit between our two great nations.”
US Commerce Secretary Howard Lutnick added:
“No tariffs there; they pay tariffs here. Switching the asymmetry our way.”
This is Trump’s fourth trade deal announced in three months, following similar unfinalised agreements with Vietnam and others. Analysts warn his volatile trade policy creates uncertainty for businesses relying on stable import-export tariffs.
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