9 hours ago
Last Updated:July 16, 2025, 07:28 IST
Donald Trump announced new trade deal with Indonesia and shared the details of the same on Truth Social.
US President Donald Trump (AP)
President Donald Trump on Tuesday (local time) said that he has reached a new trade agreement with Indonesia, as per which the Asian country will pay reduced 19% tariffs to America on its exports, while the US will pay no such levies in return on its products.
Trump revealed the details of the trade deal on his social media platform, Truth Social, said that the Asian country will buy US Energy, agricultural products, and 50 Boeing jets as part of the deal.
“This landmark Deal opens up Indonesia’s ENTIRE MARKET to the United States for the first time in History. As part of the Agreement, Indonesia has committed to purchasing $15 Billion Dollars in U.S. Energy, $4.5 Billion Dollars in American Agricultural Products, and 50 Boeing Jets, many of them 777’s. For the first time ever, our Ranchers, Farmers, and Fishermen will have Complete and Total Access to the Indonesian Market of over 280 million people," he said.
“In addition, Indonesia will pay the United States a 19% Tariff on all Goods they export to us, while U.S. Exports to Indonesia are to be Tariff and Non Tariff Barrier FREE. If there is any Transshipment from a higher Tariff Country, then that Tariff will be added on to the Tariff that Indonesia is paying," Trump added.
Markets React With Caution
The iShares MSCI Indonesia ETF rose as much as 0.7% in early trading Tuesday following Donald Trump’s announcement but broader markets remained mostly stable. The S&P 500 was little changed as investors appeared to take a wait-and-see approach.
US-Indonesia Trade Talks
Last week, Indonesia dispatched its top trade negotiator to Washington in hopes of securing a resolution and avoiding the looming tariff. According to Indonesian officials, Coordinating Minister for Economic Affairs Airlangga Hartarto held closed-door talks last week with several senior US officials, including US Trade Representative Jamieson Greer, Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent. During those meetings, Airlangga Hartarto reportedly presented a series of bilateral business proposals and investment opportunities.
Donald Trump’s Tariffs
Since April, Donald Trump has unveiled a series of country-by-country tariff demands, leaving trade partners scrambling to respond before arbitrary deadlines. Donald Trump’s Indonesia announcement follows similar moves with Vietnam, the UK, and China. Most of these declarations, however, have fallen short of formal trade deals. Donald Trump’s latest round of letters extended a July 9 deadline to August 1, warning countries that new tariffs would take effect unless they strike “better terms" with Washington.
view commentsLocation :Washington D.C., United States of America (USA)
First Published:News world Indonesia To Pay 19% One-Way Tariffs, Buy 50 Boeing Jets From US As Trump Announces Trade Deal
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