US President Donald Trump has announced a trade pact with Indonesia, resulting in a 19% tariff on Indonesian goods – significantly lower than the 32% he had previously threatened. The deal includes commitments from Indonesia to purchase $15bn in US energy, $4.5bn in American agricultural products, and 50 Boeing jets, many of them 777s.
Trump said on his Truth Social platform that under the agreement, goods transshipped to avoid higher duties would face steeper levies. The timeline for implementation remains unclear, and the period over which the purchases will take place was not specified.
The announcement comes as the Trump administration faces pressure to finalise trade pacts after promising a flurry of deals. So far, Trump has unveiled deals with Britain, Vietnam, and a temporary agreement with China. He told reporters that other negotiations, including with India and the European Union, are continuing.
Indonesia’s former vice minister for foreign affairs, Dino Patti Djalal, said government insiders were happy with the new deal. The US goods trade deficit with Indonesia was nearly $18bn in 2024, with total two-way trade just under $40bn.
Trump had earlier threatened a 32% levy on Indonesian goods, sending a letter to the country’s leadership stating it would take effect on 1 August. The lower 19% rate replaces that threat, but it is not yet clear when it will come into force.
