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Trump Secures Trade Deal With Indonesia Using Reciprocal Tariffs

The agreement trades a 19% levy on Indonesian imports for duty-free access for American goods.

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.