Trump cuts tariff on Indonesian imports to 19 per cent under new trade deal
Trump said the US will now impose a 19 per cent tariff on Indonesian imports, down from the earlier proposed 32 per cent. The agreement comes after Trump held talks with Indonesian President Prabowo Subianto.
ANI
Jul 16, 2025 14:50 IST
Washington [US], July 16 (ANI): United States President Donald Trump has announced a new trade deal with Indonesia that will reduce tariffs on Indonesian imports to 19 per cent, down from the previously proposed 32 per cent.
In return, Jakarta has agreed to major purchase commitments, including Boeing aircraft, US energy, and agricultural products, according to Al Jazeera.
The agreement follows talks between Trump and Indonesian President Prabowo Subianto.
"As part of the agreement, Indonesia will buy 50 Boeing jets, many of them 777s, along with $15 billion worth of US energy and $4.5 billion in American farm products," Trump said on his social media platform, Truth Social.
Trump earlier described the deal as a "great deal for everybody."
Last week, Trump had warned that if Indonesia failed to reach a deal, the higher 32 per cent tariff would take effect from August 1. While the new rate of 19 per cent has been announced, it is not yet clear when it will come into force.
The revised agreement will also target transshipped goods--items rerouted through third countries to avoid tariffs. Trump said such practices would now attract stricter penalties.
He added that other countries could soon face revised tariffs, hinting that smaller economies might be hit with rates "a little over 10 per cent."
Trump also said a trade deal with Vietnam was "pretty well set," though no official details have been released.
Under pressure to deliver on his "90 deals in 90 days" promise, Trump has so far confirmed only agreements with Vietnam, the UK, and a temporary easing of tariffs with China, Al Jazeera reported.
He told reporters at Joint Base Andrews that discussions were still ongoing with India and the European Union as part of his wider trade strategy.
Reacting to the new deal, Indonesia's former Deputy Foreign Minister Dino Patti Djalal said the government was satisfied with the outcome. He made the remarks during a panel hosted by Foreign Policy magazine, according to Al Jazeera. (ANI)
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