Trump Announces 19% Tariff on Indonesian Goods

Jakarta to Buy US Jets, Energy, and Agriculture Products in Major Trade Deal

US President Donald Trump has announced a new trade agreement with Indonesia, under which the Southeast Asian country will purchase 50 Boeing aircraft, $15 billion worth of US energy products, and $4.5 billion in American agricultural goods.

Speaking at Carnegie Mellon University in Pennsylvania on Tuesday (July 15), Trump said the deal includes a 19 percent tariff on Indonesian imports entering the United States.

The agreement marks the third major trade deal by the Trump administration, following earlier pacts with the United Kingdom and Vietnam.

According to Trump, the deal was finalized after discussions with Indonesian President Prabowo Subianto. It also includes provisions for higher tariffs on transshipped goods attempting to evade duties.

Earlier, Trump had threatened to impose a 32 percent tariff on Indonesian goods starting August 1. While the new agreement reduces that rate, it remains unclear when the revised tariff will take effect.

Trump also indicated that a new tariff structure—likely just above 10 percent—is being developed for smaller countries.

He added that a trade deal with Vietnam is “almost finalized,” though the terms surrounding illegal transshipments and a proposed 40 percent levy have yet to be disclosed.

Ashik/M