Trump lands Indonesia trade deal as EU readies retaliation
"Great deal, for everybody, just made with Indonesia. I dealt directly with their highly respected President. DETAILS TO FOLLOW!!!" Trump said in a post on Truth Social.
Indonesia's total trade with the US - totalling just under US$40 billion in 2024 - does not rank in the top 15, but it has been growing. US exports to Indonesia rose 3.7 per cent last year, while imports from there were up 4.8 per cent, leaving the US with a goods trade deficit of nearly US$18 billion.
The top US import categories from Indonesia, according to US Census Bureau data retrieved on the International Trade Centre's TradeMap tool, last year were palm oil, electronics equipment including data routers and switches, footwear, car tires, natural rubber and frozen shrimp.
Susiwijono Moegiarso, a senior official with Indonesia's Coordinating Ministry for Economic Affairs, told Reuters in a text message: "We are preparing a joint statement between US and Indonesia that will explain the size of reciprocal tariff for Indonesia including the tariff deal, non-tariff and commercial arrangements. We will inform (the public) soon."
Trump had threatened the Southeast Asian country with a 32 per cent tariff rate effective Aug 1 in a letter sent to its president last week. Trump sent similar letters to roughly two dozen trading partners this month, including Canada, Japan and Brazil, setting blanket tariff rates ranging from 20 per cent up to 50 per cent, as well as a 50 per cent tariff on copper.
The Aug 1 deadline gives the targeted countries time to negotiate agreements that could lower the threatened tariffs. Some investors and economists have also noted Trump's pattern of backing off his tariff threats.
Since launching his tariff policy, Trump has clinched only a few deals despite his team touting an effort to bring home "90 deals in 90 days". So far, framework agreements have been reached with the United Kingdom and Vietnam, and an interim deal has been struck with China to forestall the steepest of Trump's tariffs while negotiations continue between Washington and Beijing.
EU READIES RETALIATION
The breakthrough with Indonesia came as the European Commission, the EU's governing body, gets set to target €72 billion (US$84.1 billion) worth of US goods - from Boeing aircraft and bourbon whiskey to cars - for possible tariffs if trade talks with Washington fail.
Trump is threatening a 30 per cent tariff on imports from the EU from Aug 1, a level European officials say is unacceptable and would end normal trade between two of the world's largest markets.
The list, sent to EU member states and seen by Reuters on Tuesday, pre-dates Trump's move over the weekend to ramp up pressure on the 27-nation bloc and responds instead to US duties on cars and car parts and a 10 per cent baseline tariff.
The package also covers chemicals, medical devices, electrical and precision equipment as well as agriculture and food products - a range of fruits and vegetables, along with wine, beer and spirits - valued at €6.35 billion.
Following a meeting of EU ministers in Brussels on Monday, officials said they were still seeking a deal to avoid Trump's heavy tariff blow.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
25 minutes ago
- Straits Times
How real is Trump's U-turn on Ukraine?
The reversal is significant given the US President's previous views on Putin, but the sanctions grace period and Trumpian fickleness are reasons for caution. For the first time since he returned to power, US President Donald Trump is now explicitly blaming Russia for the continuation of Europe's bloodiest conflict since World War II. 'We want to make sure Ukraine can do what it wants to do.' That statement from US President Donald Trump on July 14 marked a U-turn on his previous position on support for the Ukrainians , locked in a brutal, bloody war against Russian invaders, now in its fourth year. In typical Trump fashion, the remarks made at a White House meeting with Nato secretary-general Mark Rutte were both imprecise and an exaggeration. It is still far from clear how much in terms of weapons and money Mr Trump is willing to contribute to Ukraine's war against Russia. And it's doubtful that the American President truly intends to give the Ukrainians a free hand to decide their future.
Straits Times
26 minutes ago
- Straits Times
Ukraine says Russian strikes kills three in the east
Find out what's new on ST website and app. A man riding a bicycle beneath anti-drone nets in Orikhiv, in Ukraine's Zaporizhzhia region, on July 15. KYIV - A combined Russian strike on the afternoon of July 15 killed three people in eastern Ukraine, local authorities said, after US President Donald Trump gave Moscow 50 days to reach a peace deal with Ukraine. Russia has been stepping up its summer offensive campaign as Washington-mediated ceasefire talks stall, claiming more ground in eastern Ukraine while pounding it with combined drone, artillery and missile strikes. 'Two dead and two injured: law enforcement officers recorded the consequences of another enemy attack in the Kupiansk district,' the Kharkiv region prosecutor's office said on social media, adding that the victims were 67 and 69 years old. Regional authorities in Sumy said a 50-year-old local resident had died after 'the enemy fired artillery at the outskirts of the Velykopysarivska community'. Elsewhere on the front line, Russian forces claimed two more villages in the Donetsk region, increasing the pace of their advance. A Ukrainian drone attack on Russia's western city of Voronezh wounded 27 people, local officials claimed on July 15. Mr Trump said he had struck a deal with Nato to supply American air defence systems and weapons to Ukraine and threatened Russia with tariffs and sanctions, as he grows frustrated with Russian leader Vladimir Putin for rejecting a ceasefire and instead intensifying attacks. AFP
Straits Times
40 minutes ago
- Straits Times
Nasdaq edges to record as Dow, S&P 500 retreat
Find out what's new on ST website and app. Traders working on the floor of the New York Stock Exchange, in New York City, on July 15. NEW YORK - Wall Street stocks finished mostly lower on July 15 despite another Nasdaq record as President Donald Trump announced a US trade deal with Indonesia ahead of a deadline still facing numerous other countries. All Indonesian goods entering the United States will encounter a 19 per cent tariff, below the 32 per cent previously threatened, according to a Trump social media post. But the deal comes as US negotiations remain unresolved with some two dozen other trading partners, with the looming US threat of steep tariffs from Aug 1. High stock market prices 'may be emboldening the administration to keep up the bluster on tariffs,' said Mr Art Hogan, of B. Riley Wealth Management, who characterised most of the most recent Trump trade headlines as unfavourable. The Dow Jones Industrial Average dropped 1 per cent to 44,023.29. The broad-based S&P declined 0.4 per cent to 6,243.76, while the tech-rich Nasdaq Composite Index gained 0.2 per cent to finish at a second straight record at 20,677.80. The Nasdaq record came as Nvidia announced it would resume sales of its H20 artificial intelligence chips to China, after Washington pledged to remove licensing curbs that had put a stop to exports. Top stories Swipe. Select. Stay informed. Singapore Las Vegas Sands' new development part of S'pore's broader, more ambitious transformation: PM Wong Singapore Economic headwinds do not dampen outlook for new Marina Bay development: Las Vegas Sands president Business MAS records net profit of $19.7 billion, fuelled by investment gains Singapore Man charged with attempted murder of woman at Kallang Wave Mall Singapore CDL's long-time director Philip Yeo to depart after boardroom feud Singapore Ex-cleaner jailed over safety lapses linked to guard's death near 1-Altitude rooftop bar Life The Violinist, Singapore's first animated historical film, set for August 2026 release Singapore 'Nobody deserves to be alone': Why Mummy and Acha have fostered over 20 children in the past 22 years Shares of Nvidia rose 4 per cent. Markets also digested data showing an uptick in inflation. The consumer price index was up 2.7 per cent from a year ago in June, rising from 2.4 per cent in May in a move that likely showed some effect from tariffs. Analysts described the report as mixed, with inflation rising enough to stay a concern, but not so much as to confirm the worst-case outcomes for tariffs. Several large banks also reported strong earnings, though shares of Wells Fargo fell 5.3 per cent following a disappointing forecast for net interest income, a closely watched benchmark. But Citigroup jumped 3.6 per cent after it topped analyst estimates by a wide margin. Meanwhile MP Materials surged 20 per cent after announcing a US$500 million (S$640 million) long-term agreement to supply Apple with rare earth magnets. The disclosure comes after the rare earth company last week announced that the US Pentagon had taken a stake in the company. Apple advanced 0.2 per cent. AFP
