President Donald Trump on Tuesday announced a new trade deal with Indonesia that lowers tariffs and secures major U.S. export commitments. The agreement, confirmed by Jakarta, reduces the tariff rate on Indonesian goods from 32% to 19%, following months of intense negotiations.
Trump, speaking before leaving for a summit in Pittsburgh, said Indonesia agreed to purchase “$15 billion Dollars in U.S. Energy, $4.5 Billion Dollars in American Agricultural Products, and 50 Boeing Jets, many of them 777’s.” He first revealed the agreement on his Truth Social platform.
Indonesia’s President Prabowo Subianto called the negotiations an “extraordinary struggle,” adding that the deal marked a new chapter in U.S.-Indonesia relations. “We agreed and concluded to take trade relations between Indonesia and the United States into a new era of mutual benefit between our two great nations,” Subianto wrote on Instagram.
U.S. Commerce Secretary Howard Lutnick praised the deal, highlighting its tariff terms. “No tariffs there; they pay tariffs here. Switching the asymmetry our way,” he said in a CNBC interview.
The deal also opens the door for Indonesian copper exports to face reduced duties. Trump hinted that Indonesia’s copper could be exempted from a planned 50% tariff on global copper imports starting August 1.
Indonesia is the 23rd largest U.S. trading partner. Last year, the U.S. imported $28 billion in goods from the country, mostly apparel and footwear, while exporting $10 billion worth of oilseeds, grain, and energy products.
This marks the fourth trade pact Trump has announced in the last three months. Previous announcements, including one with Vietnam, have yet to be detailed.
While Trump claims the agreement is a “great deal for everybody,” critics say his unpredictable tariff strategy has left businesses uncertain and hesitant to make long-term plans.
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