Overview

• President Donald Trump declared on Truth Social that he reached a “great deal” directly with Indonesia’s President and vowed that details are forthcoming.
• The White House has not disclosed any specifics on tariff cuts, covered products or reciprocal market openings under the agreement.
• The announcement follows a letter sent last week threatening a 32% duty on Indonesian goods set to take effect on August 1.
• This move is the latest in a broader U.S. strategy of using looming tariffs to secure expedited bilateral pacts, after interim deals with the U.K., Vietnam and a framework accord with China.
• Investors and economists note that previous tariff threats have functioned as leverage rather than final measures and expect the terms to be fleshed out before the deadline.