Trump Indonesia Trade Deal 19% Tariff
Trump Claims Trade Deal with Indonesia, Promises Tariff Rollback
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Washington D.C. – President Donald Trump announced Tuesday that the United States has reached a trade agreement with Indonesia, a deal he claims will lead to a importent reduction in tariffs on Indonesian imports. The proclamation, made via a brief social media post and later elaborated upon at the White House, suggests a potential shift in U.S. trade policy towards the Southeast Asian nation.
Direct Dealings with Indonesian President
Trump stated that the agreement was the result of direct discussions with Indonesian President Prabowo Subianto. ”I spoke to their really great president, very popular, very strong, smart, and we made the deal,” Trump told reporters at the White House.
Commerce secretary Howard Lutnick further suggested on CNBC’s “Halftime Report” that Indonesia would reciprocate by dropping its tariffs on U.S. goods. “No tariffs there. They pay tariffs here,” lutnick commented,indicating a mutual reduction in trade barriers.
The White House has not yet provided further details regarding the specifics of the purported agreement.
Potential Tariff Reversal
if finalized, the new tariff rate on Indonesian imports would represent a significant rollback from the 32% duty that Trump had previously threatened to impose. This move comes as Indonesia is one of the United States’ top 25 trading partners, with bilateral trade exceeding $38 billion in 2024, according to the Commerce Department. The U.S. trade deficit with Indonesia stood at $17.9 billion last year.
Echoes of Vietnam Deal
Trump’s announcement regarding Indonesia bears a striking resemblance to his July 2 declaration of a trade deal with Vietnam. While initially short on details, a subsequent post indicated a 20% tariff on vietnamese imports. However, reports suggest that Vietnamese officials were surprised by Trump’s characterization of the preliminary agreement, with the Vietnamese government reportedly not having formally accepted all aspects of the deal as of July 10.
Broader Trade Landscape
The U.S.has also engaged in preliminary trade agreements with the United Kingdom and reached a deal with China that led to the lowering of tariffs on goods exchanged between the two nations. Tho, Trump has recently diverged from customary negotiation processes, opting rather to communicate new tariff rates directly to trade partners via letters, with new rates set to take effect on August 1.
This is a developing story.Please check back for updates.