The United States has reached a trade deal with Indonesia, resulting in significant purchase commitments from the Southeast Asian country. US President Donald Trump announced the new deal on Tuesday, saying it would impose a 19% tariff on Indonesian goods entering the US. Under the agreement, Indonesia has committed to purchasing $15 billion worth of US energy products, $4.5 billion worth of American agricultural products, and 50 Boeing jets.
Trump touted the deal as a “great deal, for everybody” in a post on his Truth Social platform. “As part of the Agreement, Indonesia has committed to purchasing $15 Billion Dollars in US Energy, $4.5 Billion Dollars in American Agricultural Products, and 50 Boeing Jets, many of them 777’s,” Trump wrote. The period over which the various purchases will take place was not specified.
The agreement comes after Trump threatened to impose a 32% levy on Indonesian goods, saying in a letter to the country’s leadership that this level would take effect on August 1. It remains unclear when the lower tariff level announced on Tuesday will take effect for Indonesia.
In a separate announcement, Trump said he would soon begin notifying smaller countries of their new tariff rate, which would likely be a “little over 10 percent”. He also stated that an earlier trade deal with Vietnam was “pretty well set”, although details of the pact have not been released. “We have a Vietnam deal, and I would say that that deal is being pretty well set,” he told reporters at Joint Base Andrews in Maryland.
The Trump administration has been under pressure to wrap up trade pacts after promising a flurry of deals recently, as countries sought talks with Washington, DC to avoid Trump’s tariff plans. When Trump first postponed tariffs on April 2, the White House said it would have 90 deals in 90 days. However, the US president has so far only unveiled other deals with the United Kingdom and Vietnam, alongside an agreement to temporarily lower tit-for-tat levies with China.
Indonesian former Vice Minister for Foreign Affairs Dino Patti Djalal said government insiders had indicated they were happy with the new deal. Trump in April imposed a 10% tariff on almost all trading partners, while announcing plans to eventually hike this level for dozens of economies, including the EU and Indonesia. Last week, days before the steeper duties were due to take effect, he pushed the deadline back from July 9 to August 1.