In a recent announcement, President Trump detailed a new tariff arrangement with Indonesia, signifying a notable step in ongoing international trade negotiations.
Trump Announces New Tariff Agreement with Indonesia
Trump Announces New Tariff Agreement with Indonesia
US President Donald Trump reveals an agreement to lower tariffs on Indonesian goods while securing greater market access for American companies.
Trump stated that tariffs on Indonesian imports to the US would decrease to 19%, in return for what he termed “full access” for American businesses. The specifics of the deal, however, were not immediately corroborated by Indonesian officials, casting uncertainty over the arrangement. The development comes amid a broader context of tariff discussions that emerged after the White House introduced a series of tariffs this spring.
After altering his initial aggressive tariff strategy earlier in the year, Trump has reignited threats against several countries through warning letters, signaling potential tariffs set to commence on 1 August. Indonesia was among those nations receiving such a letter, which included a proposal for a steep 32% tariff on its goods, surprising officials who believed a deal was imminent. Following a phone call with Indonesia's president, Trump announced the reduction of that rate, claiming the country would also lower its trade tariffs on US products.
“They are going to pay 19% and we are going to pay nothing … we will have full access into Indonesia,” Trump declared to reporters. He also noted Indonesia’s commitment to buying $15 billion in US energy, $4.5 billion in agriculture, and 50 Boeing jets, although these figures were less than expected from earlier negotiations.
In addition to Indonesia, the current administration has made cautious agreements with the UK, China, and Vietnam, with most deals maintaining existing high US tariffs while other critical terms remain unresolved. Everett Eissenstat, a former economic adviser in Trump’s administration, suggested more such trade agreements might be forthcoming, while observing a shift in the negotiating positions of several countries, including Canada, where the Prime Minister hinted at tolerating previously unthinkable tariff levels.
The changing tone of trade discussions highlights the evolving landscape of international commerce under Trump's administration.
After altering his initial aggressive tariff strategy earlier in the year, Trump has reignited threats against several countries through warning letters, signaling potential tariffs set to commence on 1 August. Indonesia was among those nations receiving such a letter, which included a proposal for a steep 32% tariff on its goods, surprising officials who believed a deal was imminent. Following a phone call with Indonesia's president, Trump announced the reduction of that rate, claiming the country would also lower its trade tariffs on US products.
“They are going to pay 19% and we are going to pay nothing … we will have full access into Indonesia,” Trump declared to reporters. He also noted Indonesia’s commitment to buying $15 billion in US energy, $4.5 billion in agriculture, and 50 Boeing jets, although these figures were less than expected from earlier negotiations.
In addition to Indonesia, the current administration has made cautious agreements with the UK, China, and Vietnam, with most deals maintaining existing high US tariffs while other critical terms remain unresolved. Everett Eissenstat, a former economic adviser in Trump’s administration, suggested more such trade agreements might be forthcoming, while observing a shift in the negotiating positions of several countries, including Canada, where the Prime Minister hinted at tolerating previously unthinkable tariff levels.
The changing tone of trade discussions highlights the evolving landscape of international commerce under Trump's administration.
