White House Announces Indonesia Trade Deal, Trump Calls It 'Huge Win'

Last Updated:July 23, 2025, 07:34 IST

While the US will now sell American-made products to Indonesia at a zero tariff rate, Indonesia will pay 19% tariff on all of its products coming into the USA.

US President Donald Trump (Reuters Image)

The United States and the Republic of Indonesia on Wednesday agreed to a framework for negotiating an Agreement on Reciprocal Trade to strengthen bilateral economic ties, the White House said in a joint statement on Tuesday.

“Indonesia will eliminate approximately 99 percent of tariff barriers for a full range of US industrial and US food and agricultural products exported to Indonesia," according to the statement released by the White House.

While the United States of America will now sell American-made products to Indonesia at a zero tariff rate, Indonesia will pay 19 percent tariff on all of its products coming into the USA.

The White House also stated that the two countries will negotiate facilitative rules of origin to ensure that the benefits of the agreement accrue primarily to the United States and Indonesia.

Taking to Truth Social, Trump wrote, “It is my Great Honor to announce our Trade Agreement with the Republic of Indonesia, as represented by their Highly Respected President, Prabowo Subianto. It is agreed that Indonesia will be Open Market to American Industrial and Tech Products, and Agricultural Goods, by eliminating 99% of their Tariff Barriers. The United States of America will now sell American-made products to Indonesia at a Tariff Rate of ZERO, while Indonesia will pay 19% on all of their products coming into the U.S.A. — The Best Market in the World!"

He further added that Indonesia will supply the United States with their precious critical minerals, as well as sign BIG Deals, worth Tens of Billions of Dollars, to purchase Boeing Aircraft, American Farm products, and American Energy. “This Deal is a HUGE WIN for our Automakers, Tech Companies, Workers, Farmers, Ranchers, and Manufacturers. Thank you for your attention to this matter. MAKE AMERICA GREAT AGAIN!" he added.

The White House also noted that Indonesia will work to address barriers for US exports, including through the removal of import restrictions or licensing requirements on US remanufactured goods or their parts; the elimination of pre-shipment inspection or verification requirements on imports of US goods; and the adoption and implementation of good regulatory practices.

In the weeks ahead, the United States and Indonesia will negotiate and finalise the Agreement on Reciprocal Trade, prepare the Agreement for signature, and undertake domestic formalities in advance of the Agreement entering into force, the White House concluded.

Washington D.C., United States of America (USA)

News world White House Announces Indonesia Trade Deal, Trump Calls It 'Huge Win'