Trump says the U.S. will impose 19% tariffs on Indonesia in a new trade deal
Indonesia is among the top 25 U.S. trading partners, and U.S. trade with the country totaled $38.3 billion last year
Construction on the Marriner S. Eccles Federal Reserve building in Washington. (Al Drago/Bloomberg via Getty Images)
President Donald Trump said Tuesday that the U.S. has clinched a trade agreement with Indonesia that will leave in place a lower tariff than had initially been threatened.
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The president said the accord will establish a 19% tariff on Indonesian imports while clearing the way for duty-free U.S. exports to the country. Trump also said the Indonesian government had agreed to purchase $15 billion in U.S. energy products, $4.5 billion in agricultural products, and 50 Boeing jets.
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"For the first time ever, our Ranchers, Farmers, and Fishermen will have Complete and Total Access to the Indonesian Market of over 280 million people," Trump posted on his Truth Social platform.
Indonesia is among the top 25 U.S. trading partners, and U.S. trade totaled $38.3 billion in 2024. Rubber tires, palm oil, electronics, and footwear make up the bulk of Indonesian exports to the U.S. Those products may well get hit with higher prices as a result of the tariff that will take effect sometime in the near future. The White House did not respond to a request for comment.
Over the past week, Trump has short-circuited time-consuming trade negotiations and sent letters to dozens of foreign governments dictating their tariff rates starting Aug. 1 if no broad deal was reached. Indonesian President Prabowo Subianto was among those who received a letter from Trump threatening a 32% tariff.
It wasn't clear if the Indonesian government had signed off on the agreement. The Indonesian Embassy in Washington, D.C. couldn't be reached for comment.
An earlier trade agreement with Vietnam that Trump had billed as wrapped up still appears to have key details in dispute.
Still, the early sketch of the agreement indicates Trump could be on course to wall off the U.S. economy with steep tariffs more reminiscent of the 20th century.
"A 19% tariff on Indonesian imports suggests we may be landing as substantially higher tariff rates across the board than 10%," Brendan Duke, an economist at the left-leaning Center on Budget and Policy Priorities, wrote on X.