The United States will impose a 19% tariff on Indonesian imports under a new trade agreement with the country, U.S. President Donald Trump has said.
Indonesia would also buy US$15 billion in energy and $4.5 billion in agricultural products from the U.S. under the deal, Trump said, as well as 50 Boeing aircraft.
“This morning I finalized an important Deal with the Republic of Indonesia after speaking with their Highly Respected President Prabowo Subianto,” wrote Trump on Truth Social. Indonesian officials have yet to make an announcement.
“This landmark Deal opens up Indonesia’s ENTIRE MARKET to the United States for the first time in History.”
Indonesia will not impose tariffs on U.S. goods under this agreement, per Trump.
Trump had sent a letter to Prabowo earlier in July threatening a tariff of 32% on Indonesian imports if Indonesia did not agree to a deal. Letters were also sent to many other trading partners, such as Canada, Mexico, and Japan, saying the U.S. would set blanket tariff rates of 20-50% from 1 August if these countries did not cooperate.
U.S. trade with Indonesia reached around US$38.3 billion last year. U.S. exports to Indonesia increased by 3.7% to $10.2 billion, while imports from Indonesia rose by 4.8% to $28.1 billion.
Trump announced a trade agreement with Vietnam on 3 July under similar terms, saying Vietnam would impose no tariffs on U.S. imports while the U.S. would include a 20% tariff on Vietnamese goods. However, Vietnamese officials reportedly had agreed to an 11% tariff rate instead, and the two countries have not formally signed off on the deal.
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