Indonesian goods to face 19% US tariff under new deal

16 Jul '25

2 min read

Indonesian goods to face 19% US tariff under new deal

US President Donald Trump. Pic: noamgalai / Shutterstock.com

Insights

Trump has unveiled a major trade deal with Indonesia, replacing a threatened 32 per cent tariff with a 19 per cent duty on Indonesian exports to the US.
In return, Indonesia will buy $15 billion in US energy, $4.5 billion in agriculture, and 50 Boeing jets.
US exports gain full tariff- and barrier-free access, marking an unprecedented opening of Indonesia's market to US producers.

US President Donald Trump has announced a landmark trade agreement with Indonesia that will see all Indonesian exports to the US subject to a 19 per cent tariff—replacing the 32 per cent rate he had threatened to impose from August 1. The deal followed direct negotiations with Indonesian President Prabowo Subianto.

Under the agreement, Indonesia will purchase $15 billion in US energy products, $4.5 billion in agricultural goods, and 50 Boeing aircraft, including several 777 jets. In return, US exporters will enjoy full tariff- and barrier-free access to the Indonesian market, a first in the two countries’ trade history, Trump said in a post on Truth Social on Tuesday

Trump said the 19 per cent tariff on Indonesian goods would help correct the trade imbalance and ensure fairer terms. He also warned that any transshipments from higher-tariff countries routed through Indonesia would attract additional duties.

“This landmark Deal opens up Indonesia’s ENTIRE MARKET to the United States,” Trump declared, celebrating what he called a breakthrough for US ranchers, farmers, and fishermen gaining access to a consumer base of over 280 million people.

The announcement follows recent trade pacts Trump has brokered with Vietnam, the UK, and China.

Fibre2Fashion News Desk (KD)

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