ASIATODAY.ID, WASHINGTON — In a major development in global trade, U.S. President Donald Trump has unveiled a new trade agreement with Indonesia, featuring a 19% tariff on Indonesian imports to the U.S. and major purchase commitments from Jakarta.
Announced via his Truth Social account on Tuesday, Trump described the deal as a “great agreement for everybody,” adding that Indonesia will purchase $15 billion in U.S. energy, $4.5 billion in American agricultural products, and 50 Boeing aircraft, including numerous 777 models.
The announcement marks the third trade deal secured by the Trump administration in recent months, following agreements with the United Kingdom and Vietnam. It also follows weeks of speculation after Trump had threatened to impose a 32% tariff on Indonesian goods if a deal wasn’t reached.
Tariff Reduced, But Questions Remain
While the finalized 19% tariff is lower than initially threatened, it’s still a significant increase compared to previous trade terms. It remains unclear when the new tariff will officially take effect, or over what period Indonesia will carry out its purchasing commitments.
In his post, Trump said the deal was reached following direct talks with Indonesian President Prabowo Subianto, emphasizing that goods transshipped to avoid tariffs would now face steeper penalties under the new enforcement terms.
Broader Trade Agenda Continues
Speaking separately from Joint Base Andrews, Trump also referenced progress on other pending deals, stating that an agreement with Vietnam is “pretty well set,” though full details, including on a potential 40% tariff for illegal transshipments, remain undisclosed.
He also hinted that tariff notifications for other “smaller countries” were imminent, with expected rates hovering around 10%.
Despite the announcement of a large-scale Boeing order, the aerospace giant’s stock saw little movement on Tuesday. Analysts suggest the market had priced in possible trade announcements following recent remarks by Trump signaling forthcoming deals.
Trump’s Tariff Blitz Widens
This agreement comes as part of Trump’s wider global tariff strategy. Since April, the administration has imposed a baseline 10% tariff on nearly all trading partners, with warnings of further hikes. Over 20 countries, including the EU, Japan, South Korea, Malaysia, Canada, and Mexico, have now received formal letters detailing upcoming tariff increases set to begin August 1.
The White House had initially promised “90 deals in 90 days” when tariffs were first postponed in April, but so far, only a handful of trade agreements have been announced. (AT Network)
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