Trump and Indonesia Sign Trade Deal Locking in 19% Tariffs

The United States and Indonesia signed a trade deal that establishes zero tariffs on virtually all U.S. exports to Indonesia and a 19 percent tariff on Indonesian goods. The agreement formalizes terms reached last July and makes Indonesia the third Southeast Asian country to lock in lower tariffs after Malaysia and Cambodia.

Mr. Trump had at one point threatened Indonesia with a 32 percent tariff last year. After seven rounds of negotiations and four trips to Washington, Indonesian officials agreed to roll back long-prevailing trade barriers, including inspections of farm products, export restrictions on critical minerals and local content requirements.

Indonesia committed to import $15 billion worth of U.S. energy and $13.5 billion in American airplanes and aviation equipment, and agreed to give American companies access to its critical mineral and oil resources to “explore, mine, extract” and export. The deal also requires Indonesia to align with the United States on using trade policy to advance U.S.

United States, Indonesia

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