Trump lowers Indonesia tariff from 32% to 19%, includes Boeing, energy deals
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More news: US President Trump disclosed some details of the US–Indonesia trade agreement, saying the country will face a 19% tariff on its exports to the US, while American goods will be tariff and non-tariff barrier free.
Trump said Indonesia also agreed to purchase US$15 billion in US energy, US$4.5 billion in agricultural products and 50 Boeing jets, many of them 777s.
What they said: Trump claimed the deal would open up Indonesia’s entire market to the US “for the first time in history” and repeated threats that any transshipments from higher-tariff countries would incur additional charges.
The announcement comes after Trump’s last week wrote to Indonesia’s President Prabowo Subianto threatening the country with a 32% tariff.
Trump announces trade deal with Indonesia after threatening 32% tariff
The news: US President Donald Trump announced what he said was a trade deal with Indonesia, just a week after threatening the country with a 32% tariff.
The president provided no specifics of what the accord he cited includes.
The context: Last week Trump posted a wave of tariff letters sent to over two dozen countries, with blanket rates from 20% to 50% effective 1 August unless new terms are reached.
The deal with Indonesia comes amid rising trade tension with the European Union, and follows similar framework announcements involving Vietnam, the UK and China, though these have so far fallen short of full-fledged trade deals, with many details left to be negotiated.
What they said: Trump posted on social media, “Great deal, for everybody, just made with Indonesia. I dealt directly with with their highly respected President. DETAILS TO FOLLOW!!!”
Susiwijono Moegiarso, a senior official with Indonesia's Coordinating Ministry for Economic Affairs, told Reuters the country was preparing a joint statement with the US with the tariff deal, detailing the size of reciprocal tariff for Indonesia, as well as non-tariff and commercial arrangements.
The sources: Donald Trump post, Reuters, Bloomberg
