Overview
- President Trump announced on July 15 that the United States and Indonesia have finalized a bilateral trade agreement under his reciprocal tariff policy.
- Indonesia will open its domestic market to U.S. exports without duties while the United States will impose a 19% tariff on Indonesian imports.
- Indonesian companies have pledged to spend $34 billion on American agricultural and petroleum products as part of the deal.
- The pact includes Indonesia’s commitment to purchase 50 Boeing aircraft, including multiple 777 wide-body jets.
- A 90-day suspension of most U.S. reciprocal tariffs remains in effect through August 1, and Indonesian exporters such as shoe manufacturers are preparing for the new duties.