Trump and Indonesia Forge New Trade Agreement Amid Tariff Tensions

President Trump has announced a new trade agreement with Indonesia after months of negotiations. The deal eliminates tariffs on U.S. exports while imposing a 19% tariff on Indonesian imports. This agreement comes as the administration seeks multiple trade deals and aims to alleviate the impact of previously threatened tariffs.

In a significant development in international trade, President Trump revealed on Tuesday that he had formalized a deal with Indonesia, referring to it as a “great deal for everybody.” The announcement was complemented by Indonesian President Prabowo Subianto, who confirmed the agreement’s framework during a press conference in Jakarta. According to the terms set forth, exports from the United States to Indonesia will experience no tariffs, while Indonesian goods entering the United States will be subjected to a 19% tariff.

This new accord follows an intensive negotiation period, with both nations striving to address each other's concerns. “After tough negotiations, we finally reached an agreement,” President Prabowo stated, emphasizing the mutual understanding that developed throughout the talks. This announcement arrives just as the Trump administration is pursuing trade agreements globally, while concurrently developing plans to implement double-digit tariffs on the exports of around two dozen nations if negotiations do not progress satisfactorily by August 1.

The recent turn of events is particularly noticeable given that just last week, President Trump had threatened Indonesia with a 32% tariff on its exports, which caught Indonesian officials off guard, as earlier negotiations were perceived to be progressing positively. “I think it’s a good deal for both parties,” Trump remarked, also hinting at an upcoming agreement with India that may share a similar framework. He added that Indonesia's rich deposits of minerals, including high-quality copper, will be beneficial moving forward.