US President Donald Trump signals a strategic shift in Tariff Policy for Indonesia. Trump has announced a trade agreement with Indonesia, imposing a 19% tariff on Indonesian exports. However, American goods will enter Indonesia without any tariff. Trump has announced this via his social media, Truth Social. He therefore, has confirmed it to the reporters.
The government of Indonesian has to issue an official statement. The officials confirmed discussions on reciprocal tariffs and non-tariff arrangements though.
Indonesia Set to Finalize Major Trade Deals with US
Indonesia has reportedly agreed to purchase $15 billion in US energy, $4.5 billion in agricultural goods, and 50 Boeing aircraft, including several 777 models. These figures need a formal confirmation from Jakarta.
Trump noted that Indonesia’s copper exports, valued at $20 million last year per US Commerce Department data, could be impacted by a planned 50% US tariff on all copper imports starting August 1. Indonesia ranks well behind Chile ($6 billion) and Canada ($4 billion) in copper exports to the US.
Global Implications as US Pursues Similar Trade Paths
This is Trump’s fourth trade announcement in the last three months. The details for the same are pending and yet to be released. Trump also indicated that India may be negotiating a similar arrangement.
The US imported $28 billion in goods from Indonesia in 2024, primarily apparel and footwear, while exporting $10 billion, led by oilseeds and energy, according to the US Commerce Department.
Also Read: Trump Announces 30% Tariffs on EU and Mexico Starting August 1
Ankur Mishra is a journalist who covers an extensive range of news, from business, stock markets, IPOs to geopolitics, world affairs, international crises, and general news. With over a decade of experience in the business domain, Ankur has been associated with some of the reputed media brands. Through a sharp eye on global marketplaces along with deep insights and analysis of business strategies, Ankur brings simplicity to the complex economic matrix to decode market trends and empower people.
He is committed to entrenched data, facts, research, solutions, and a dedication to value-based journalism. He has covered trade tariff wars, international alliances, corporate policies, government initiatives, regulatory developments, along with micro- and macroeconomic shifts impacting global fiscal dynamics.
