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 more deals were on the way with other Asian countries.

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

On July 15th, US time, President Donald Trump announced on the social media platform Truth Social that he had "closed a major deal" on trade with Indonesia after speaking with President Prabowo Subianto of that country.

Accordingly, Indonesian goods exported to the US will be subject to a 19% tariff, lower than the 32% that Trump had threatened to impose on the country.

Goods transiting from a country with a higher tariff rate will have that tariff added to Indonesia's tariff. Conversely, US goods exported to Indonesia will be exempt from both tariffs and non-tariff barriers.

To qualify for the tax reduction, Indonesia also had to commit to purchasing $15 billion worth of energy products, $4.5 billion worth of agricultural products from the US, and 50 Boeing aircraft, including several Boeing 777s.

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

However, Mr. Trump did not specify when these tariffs would be implemented, nor did he comment on Indonesia's purchase agreements.

Reuters quoted Susiwijono Moegialso, a senior official at Indonesia's Ministry of Economic Coordination, as saying that the country would soon announce the agreement.

"We are preparing a joint statement between the U.S. and Indonesia that will explain the scope of reciprocal tariffs for Indonesia, including tariff agreements, non-tariff agreements, and trade. We will announce it to the public soon," the official said.

Earlier, former Indonesian Deputy Foreign Minister Dino Patti Djalal also said that many in the Indonesian government were pleased with the new agreement.

Indonesia's total trade with the US is projected to reach nearly $40 billion in 2024, placing it outside of Washington's top 15 largest trading partners.

U.S. exports to Indonesia increased by 3.7% last year, while imports from Indonesia rose by 4.8%, resulting in a U.S. trade deficit of nearly $18 billion.

Also on July 15, Mr. Trump told reporters that agreements with other countries, including India, were still underway while negotiations with the European Union were continuing. In addition, the US would prepare to send tax notices to smaller countries with tariffs "a little over 10%".

The agreement with Indonesia is one of the few deals the Trump administration has reached so far ahead of the August 1 deadline when tariffs on most US imports will be raised again.

Countries are urgently negotiating to reach favorable tariff levels with Washington. Meanwhile, the EU, America's top trading partner, has declared 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