U.S. President Donald Trump announced on the 15th (local time) that he has concluded trade negotiations with Indonesia. Accordingly, Indonesia will completely eliminate tariffs and non-tariff barriers on U.S. products, and the United States will reduce the existing tariff rate of 32% on Indonesian products to 19%.
On this day, President Trump met with reporters at the White House and on his social media platform, Truth Social, and stated, "I finalized an important trade agreement after a call with Indonesian President Prabowo Subianto." He explained, "Indonesia will be charged a tariff of 19% on all products exported to the United States, and the United States will not impose any tariffs on its products exported to Indonesia."
In this regard, President Trump emphasized, "These tariffs will also apply to third-country products that enter the market through the U.S. market." He also noted, "Through this agreement, non-tariff barriers have been completely removed, enabling U.S. corporations to enter the Indonesian market in all sectors."
President Trump stated that Indonesia has agreed to import $15 billion worth of U.S. energy, $4.5 billion worth of agricultural products, and purchase 50 Boeing aircraft (mostly 777 models). He remarked, "This agreement is a historic turning point that opens the entire Indonesian market to the United States for the first time," adding, "American farmers, fishermen, and corporations now have full access to the Indonesian market, which has a population of 280 million."
However, President Trump did not mention whether the applied tariff rate on Indonesian copper would be an exception, as he previously announced that he would impose a tariff of 50% on foreign copper starting from the 1st of next month.
Last year, trade between the U.S. and Indonesia amounted to approximately $40 billion, showing a steady increase in trade between the two countries. U.S. exports to Indonesia increased by 3.7%, while imports rose by 4.8%, resulting in a trade deficit of approximately $18 billion.
President Trump emphasized that he has also signed similar agreements with Vietnam and the United Kingdom alongside this agreement. He mentioned, "Negotiations with India are fundamentally moving in the same direction, and now access to these countries has become possible thanks to the tariffs." Regarding the European Union (EU), he stated, "Discussions are currently ongoing and making progress," adding, "We have already entered into a 'SEOHAN ENGINEERING & CONSTRUCTION' format agreement with the EU."
Regarding the possibility of the EU imposing retaliatory tariffs, he said, "They have made a lot of profits and have treated the United States poorly in the past, but now they are very friendly," stating, "Everyone will be satisfied." President Trump plans to visit Scotland, UK, at the end of this month to meet with British Prime Minister Keir Starmer, and noted, "We will improve the existing trade agreement."