What is the tariff agreement between the US and Indonesia?

US President Donald Trump said he had reached a deal with Indonesia to reduce tariffs to 19%, and that more deals with other Asian countries were on the way.

A cargo port in North Jakarta, Indonesia - Photo: REUTERS

On July 15, US time, President Donald Trump announced on the social network Truth Social that he had "closed an important deal" on trade with Indonesia after talking with the country's President Prabowo Subianto.

Accordingly, Indonesian goods exported to the US will be subject to a 19% tax, lower than the 32% rate that Mr. Trump has threatened to impose on this country.

Goods in transit from a country with a higher tariff will have that tariff added to Indonesia's. Conversely, US exports to Indonesia will be exempt from both tariffs and non-tariff barriers.

To get the tax breaks, Indonesia also committed to buying $15 billion in energy products, $4.5 billion in agricultural products from the US and 50 Boeing aircraft, including many Boeing 777s.

"For the first time, American ranchers, farmers, and fishermen will have full access to the Indonesian market of more than 280 million people," Trump wrote.

However, Mr. Trump did not specify the implementation time of this tax as well as the purchase agreements with Indonesia.

Reuters news agency quoted Mr. Susiwijono Moegiarso, a senior official at Indonesia's Coordinating Ministry of Economic Affairs , as saying that the country would soon announce the deal.

"We are preparing a joint statement between the United States and Indonesia that will explain the scope of reciprocal tariffs for Indonesia, including tariff agreements, non-tariff agreements and trade. We will inform the public soon," the official said.

Previously, former Indonesian Deputy Foreign Minister Dino Patti Djalal also said that many people in the Indonesian Government were satisfied with the new agreement.

Indonesia's total trade turnover with the US will reach nearly 40 billion USD in 2024, not among Washington's top 15 major partners.

US exports to Indonesia rose 3.7% last year, while imports from Indonesia rose 4.8%, leaving the US with a trade deficit of nearly $18 billion.

Also on July 15, Mr. Trump told reporters that deals with other countries, including India, were still in progress while negotiations with the European Union continued. In addition, the US would prepare to send tariff notice letters to smaller countries with tariffs of “a little over 10%.”

The deal with Indonesia is one of the few the Trump administration has reached so far, ahead of an Aug. 1 deadline when tariffs on most U.S. imports are set to rise again.

Countries are urgently negotiating to reach a good tariff with Washington. Meanwhile, the US's top trading partner, the EU, has announced that it is ready to retaliate if negotiations with Washington fail.

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Source: https://tuoitre.vn/thoa-thuan-thue-quan-giua-my-va-indonesia-co-gi-20250716094738843.htm