US, Indonesia trade deal: Tariffs cut to 19%, Trump calls it 'huge win'

US, Indonesia sign major trade pact

The United States and Indonesia have finalized a trade agreement that will remove tariffs on over 99% of US exports and eliminate all non-tariff barriers affecting American businesses. In return, the US will reduce proposed tariffs on Indonesian goods from 32% to 19%.

Trump praised the agreement originally announced on July 15 through a post on his Truth Social platform, describing it as a “huge win for our Automakers, Tech Companies, Workers, Farmers, Ranchers, and Manufacturers.”

As part of the deal, new measures such as pre-shipment inspections on U.S. agricultural exports will be eliminated, addressing longstanding issues that had contributed to the widening U.S. farm trade deficit.

"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!" Trump posted his Truth Social account.

The agreement comes shortly before a scheduled tariff increase on several nations set for August 1 and builds on recent trade pacts with the UK, Vietnam, and the Philippines part of a wider U.S. strategy to deepen economic engagement in the Indo-Pacific region.

As part of the deal, Indonesia will abandon plans to impose tariffs on cross-border data transfers and will back the World Trade Organization’s ongoing moratorium on e-commerce tariffs moves that support the U.S. objective of safeguarding global digital trade standards.