Overview

• President Trump finalised the agreement on July 15 after he postponed a threatened 32% levy on Indonesian exports from July 9 to August 1.
• Indonesia has committed to purchasing $15 billion of U.S. energy products, $4.5 billion of American agricultural goods and 50 Boeing jets under the new terms.
• The deal mirrors recent framework pacts with the U.K. and Vietnam and follows an interim trade truce with China as part of a broader reciprocal tariff strategy.
• The European Commission has drafted retaliation measures targeting €72 billion of U.S. exports—including aircraft, cars and spirits—and delayed an initial €21 billion package to August 6 for further talks.
• Trump’s ‘liberation day’ tariffs have pushed U.S. duties to levels not seen since the 1930s and prompted letters to more than 20 partners urging bilateral agreements before the August 1 deadline.