President Trump announced on Tuesday that his team struck a trade deal with Indonesia, under which goods imported from the country will face a 19% tariff. He also confirmed that U.S. goods exported to Indonesia will not be subject to any import tax.
This announcement follows Trump’s release of new tariff letters to over 20 trade partners, imposing duties ranging from 20% to 40%, except for a 50% tariff on Brazilian goods—a move that has stirred political tensions within Brazil.
Previously, Indonesian imports were slated to face a 32% tariff starting August 1, according to a July 7 letter Trump sent to Indonesia’s President Prabowo Subianto. Trump’s statement on Tuesday marks a significant reduction.
Tensions with other trading partners have escalated as well. Trump recently imposed a 35% tariff on Canadian goods and threatened 30% duties on Mexico and the European Union. The EU, in response, has been preparing trade deal options and a comprehensive list of counter-tariffs covering €72 billion ($84 billion USD) worth of U.S. products should negotiations fail. The EU’s chief negotiator warned Monday, “There will be a huge impact on trade. It will be almost impossible to continue trading as we are used to in a transatlantic relationship.”
Other key developments include:
- Vietnam: Trump announced a 20% tariff on Vietnamese imports, down from the 46% he threatened in April. However, a 40% tariff will apply to goods deemed “transshipped” from other countries through Vietnam, such as China. Vietnam’s leaders were reportedly caught off guard by the announcement and are now seeking to reduce the tariff rate.
- India: Following Brazil’s tariff hike, India—another BRICS member—is negotiating a framework that could reduce U.S. tariffs on Indian goods to below 20%.
- Russia: Trump has threatened “secondary” tariffs on Russia up to 100%, aiming to pressure the country over the war in Ukraine.
At a White House press event, Trump stated, “They are paying 19 percent and we are not paying anything. We are going to have full access to Indonesia.” Indonesian Coordinating Ministry for Economic Affairs Secretary Susiwijono Moegiarso said that Jakarta and Washington are preparing a joint statement with more details, including non-tariff measures and commercial agreements.
Indonesia’s chief negotiator, Minister Airlangga Hartarto, recently met with U.S. officials—including Trade Representative Jamieson Greer, Commerce Secretary Howard Lutnick, and Treasury Secretary Scott Bessent—to finalize the improved deal. Indonesia had initially proposed near-zero tariffs on roughly 70% of U.S. imports and sought business deals in critical minerals, energy, agriculture, and defense, but was unable to secure a tariff reduction from the original 32% rate set in April.
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