Trump Secures US-Indonesia Trade Deal Slashing Tariffs to 19%

In a major win for the Trump administration, the United States and Indonesia have reached a sweeping new trade agreement that eliminates tariffs on over 99% of U.S. goods and slashes American tariffs on Indonesian products from 32% to 19%.

Announced on July 15 and formally detailed Tuesday, the US-Indonesia trade deal was praised by former President Donald Trump on Truth Social as a “huge win for our Automakers, Tech Companies, Workers, Farmers, Ranchers, and Manufacturers.”

According to a joint statement from both nations and a White House fact sheet, the deal will provide unprecedented market access for exporters and strengthen bilateral economic ties. Final terms of the agreement are expected in the coming weeks.

Key Provisions of the US-Indonesia Trade Deal:

• Tariff Cuts: Indonesia will eliminate tariffs on more than 99% of U.S. goods. In return, the U.S. will reduce tariffs on Indonesian imports to 19%.

• Non-Tariff Barrier Removal: Indonesia agreed to remove pre-shipment inspections and licensing requirements that hindered U.S. agricultural exports, a longstanding source of trade imbalance.

• Auto Exports Boost: Indonesia will accept U.S. Federal Motor Vehicle Safety Standards, opening new opportunities for American automakers.

• Critical Minerals and E-Commerce: Export restrictions on industrial commodities and digital tariffs will be lifted. Indonesia also reaffirmed its support for the WTO moratorium on e-commerce duties.

• Steel Agreement: Indonesia will join the Global Forum on Steel Excess Capacity and commit to reducing global oversupply.

The US-Indonesia trade deal is one of the few finalized by the Trump administration ahead of the August 1 deadline for higher tariffs. It follows similar tariff arrangements with the Philippines and Vietnam.

A senior administration official, speaking on background, said the agreement aims to restore America’s agricultural surplus with Indonesia and eliminate burdensome local content rules. The U.S. will also consider further tariff reductions on commodities not produced domestically.

This strategic pact reinforces Trump’s broader America First trade policy while deepening economic engagement with Southeast Asia’s largest economy.

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