President Trump has reached a trade agreement with Indonesia that abolishes tariffs on U.S. exports while implementing a 19% tariff on Indonesian goods entering the U.S.
Trade Deal with Indonesia: Trump Claims "Great Deal for Everybody"
Trade Deal with Indonesia: Trump Claims "Great Deal for Everybody"
President Trump announces a new trade agreement with Indonesia amidst ongoing trade negotiations with various nations.
On July 16, 2025, President Trump declared a newfound trade arrangement with Indonesia, labeling it a “great deal for everybody” via social media. Indonesian President Prabowo Subianto confirmed the contours of the agreement in Jakarta shortly after, revealing that the U.S. would not impose tariffs on its exports to Indonesia, while Indonesian goods sold in the U.S. would be hit with a 19% tariff.
Following several months of discussions, these developments come against a backdrop where the Trump administration is actively pursuing trade agreements with other nations and has warned of imposing double-digit tariffs on around two dozen countries by August 1 if negotiations stagnate. It was reported that last week, Trump had threatened Indonesia with a staggering 32% tariff on exports in a letter posted online, which took Indonesian officials by surprise given the previously positive dialogue.
President Trump expressed optimism in the deal, asserting its mutual benefits. He also hinted at an upcoming trade agreement with India that he expects will mirror the recent arrangement with Indonesia. More specifically, Trump commented on Indonesia's abundant minerals, including high-quality copper, which he indicated would be significant for U.S. utilization in various sectors. This agreement marks a pivotal moment in U.S.-Indonesia trade relations and illustrates the ongoing reshaping of global trade dynamics under the current administration.
Following several months of discussions, these developments come against a backdrop where the Trump administration is actively pursuing trade agreements with other nations and has warned of imposing double-digit tariffs on around two dozen countries by August 1 if negotiations stagnate. It was reported that last week, Trump had threatened Indonesia with a staggering 32% tariff on exports in a letter posted online, which took Indonesian officials by surprise given the previously positive dialogue.
President Trump expressed optimism in the deal, asserting its mutual benefits. He also hinted at an upcoming trade agreement with India that he expects will mirror the recent arrangement with Indonesia. More specifically, Trump commented on Indonesia's abundant minerals, including high-quality copper, which he indicated would be significant for U.S. utilization in various sectors. This agreement marks a pivotal moment in U.S.-Indonesia trade relations and illustrates the ongoing reshaping of global trade dynamics under the current administration.
