Trump says Indonesia will face a 19% tariff under new trade agreement.

WASHINGTON, July 16 — President Donald Trump announced yesterday that the United States has reached a trade agreement with Indonesia, which includes major purchase commitments by the Southeast Asian nation. The deal comes after negotiations aimed at avoiding higher US tariffs on Indonesian imports.

Trump stated on his Truth Social platform that Indonesian goods entering the US will now face a 19 per cent tariff—lower than the 32 per cent he had previously threatened.

“As part of the agreement, Indonesia has pledged to buy US$15 billion worth of American energy, US$4.5 billion in agricultural products, and 50 Boeing aircraft, many of them 777s,” Trump wrote. Following the announcement, Boeing shares rose by 0.9 per cent.

In another post, he described the finalised pact as a “great deal for everybody.”

The Trump administration has been under mounting pressure to secure trade agreements after recently promising a wave of new deals, as various countries entered talks with Washington to avoid potential tariff hikes.

So far, the president has only announced trade arrangements with the United Kingdom, Vietnam, and a temporary easing of reciprocal tariffs with China.

Just last week, Trump had threatened to impose a 32 per cent tariff on Indonesian products starting August 1, via a letter to Indonesia’s leadership. It remains unclear when the new 19 per cent tariff rate will be implemented, or over what timeframe Indonesia will complete its purchase commitments.

Trump also noted that under the new deal—finalized after discussions with Indonesian President Prabowo Subianto—goods that are re-routed through other countries to avoid tariffs will now face higher duties.

He told reporters that additional trade deals are in the pipeline, including one with India, and that discussions with the European Union are still ongoing.

At a Foreign Policy event on Tuesday, Indonesia’s former vice minister for foreign affairs Dino Patti Djalal said that officials in Jakarta were reportedly pleased with the agreement.

Push for tariffs

In April, Trump had imposed a 10 per cent tariff on nearly all of America’s trading partners, and announced plans to raise these rates for dozens of countries—including the EU and Indonesia.

However, just before the steeper tariffs were due to take effect, Trump delayed the implementation date from July 9 to August 1—his second postponement.

Since last week, the US president has been sending formal letters to trading partners outlining the tariffs they may face starting August. Over 20 such letters have gone out so far, including to the EU, Japan, South Korea, Malaysia, Canada, and Mexico.

Though Canada and Mexico weren’t initially targeted in Trump’s April tariff campaign, they too received updates on adjusted tariffs. Nonetheless, existing exemptions under the North American trade agreement are expected to stay in place, according to a US official.

Trump has defended his broad tariff strategy as a way to address what his administration considers unfair trade practices that disadvantage American businesses.

However, some analysts warn that without resulting trade agreements, the American public may view the tariffs as harmful rather than beneficial.

“In the public’s mind, the tariffs are the pain, and the agreements are the gain. If there are no agreements, people will conclude his strategy was flawed,” said William Reinsch, senior adviser at the Center for Strategic and International Studies. — AFP