The US and Indonesia reach a trade deal as Trump delays sweeping tariff hikes and seeks to boost American exports ahead of August’s trade policy shift.
US President Donald Trump has unveiled a new trade agreement with Indonesia that includes reduced tariffs on Indonesian imports and large-scale purchases of American goods, including Boeing aircraft and agricultural products.
In a statement published on his Truth Social account, Trump confirmed that Indonesian goods entering the US will now face a 19% tariff, significantly lower than the previously proposed 32%. “They are going to pay 19% and we are going to pay nothing … we will have full access into Indonesia,” Trump said outside the Oval Office.
According to the US president, the agreement follows a direct conversation with Indonesian President Prabowo Subianto and features a series of key commitments from Jakarta. These include $15 billion in energy imports from the US, $4.5 billion in American agricultural goods, and the purchase of 50 Boeing aircraft, “many of them 777’s.” Despite the announcement, Boeing’s stock closed slightly lower on the day, down 0.2%.
Trump did not specify the timeline for when the tariff reduction and purchase agreements would take effect, but warned that transshipped goods intended to bypass higher US duties would face steep penalties.
