In brief
On July 16, 2025, President Trump revealed a trade agreement with Indonesia amidst ongoing discussions to prevent steep tariffs on exports. The deal eases U.S. tariffs on Indonesian products while imposing a 19% tariff on U.S. exports to Indonesia.
President Trump announced on July 16, 2025, that the United States has reached a significant trade agreement with Indonesia, which he referred to as a “great deal for everybody.” The Indonesian President, Prabowo Subianto, confirmed the deal's basics during a press briefing in Jakarta, noting that U.S. exports to Indonesia would face no tariffs, while counterparts from Indonesia would incur a tariff of 19% in the United States. This agreement comes as the Trump administration seeks to close trade deals with various countries, simultaneously threatening a rollout of double-digit tariffs on exports from around two dozen nations by August 1 if concessions aren’t met. Prior to this announcement, the U.S. administration had been engaged in months of discussions with Indonesian officials. Just last week, Trump had shocked Indonesian leaders by threatening to impose a steep 32% tariff on their exports via a public social media letter. Local officials expressed surprise, stating negotiations were proceeding positively. “I believe this agreement is beneficial for both sides,” Trump said, adding that similar terms are expected to be extended in an upcoming deal with India. He further emphasized Indonesia’s valuable resources, including high-quality copper, that are critical to U.S. industries.As the world watches closely, this trade pact may mark a new chapter in U.S.-Indonesia relations and set the tone for future international trade negotiations.
