President Donald Trump has announced a trade agreement with Indonesia that will see goods from Indonesia face a 19 per cent tariff, while US exports will not be taxed. Trump told reporters at the White House that the United States would have full access to Indonesia. He stated, “They are paying 19 per cent and we are not paying anything.” Trump has been sending tariff letters to multiple trading partners, increasing pressure on negotiators before an August 1 deadline for higher duties to take effect. The agreement with Indonesia marks the first with a country targeted by one of those messages to reduce its rate, after Indonesia was threatened with a 32 per cent tariff.
In addition to the tariff agreement, Indonesia has also agreed to purchase $US15 billion in US energy and $US4.5 billion worth of agricultural products. Furthermore, the country will acquire 50 Boeing jets, “many of them 777’s”, according to Trump’s social media post. The president also noted that any transshipment from a higher tariff country would result in that tariff being added to Indonesia’s existing tariff.
Trump initially announced the accord on social media without providing specifics, stating that he dealt directly with Indonesian President Prabowo Subianto to finalise the deal. Despite this new deal, Indonesia’s total trade with the US, which totalled just under $US40 billion in 2024, remains outside the top 15 trading partners.
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