In new deal, Trump keeps Indonesia tariff at 19%; country to buy 50 Boeing jets
Taking to Truth Social, Trump said, "This morning I finalized an important Deal with the Republic of Indonesia after speaking with their Highly Respected President Prabowo Subianto. This landmark Deal opens up Indonesia's ENTIRE MARKET to the United States for the first time in History."
US-Indonesia trade deal
He said that as part of the deal, Indonesia has committed to purchasing US energy worth $15 billion and American agricultural products amounting to $4.5 billion. The US President added that Indonesia will also purchase 50 Boeing jets, many of which would be the 777 aircraft model.
"For the first time ever, our Ranchers, Farmers, and Fishermen will have Complete and Total Access to the Indonesian Market of over 280 million people," he added.
Since the US and Indonesia reached a trade deal before the August 1 deadline, the Southeast Asian country will now pay a 19 per cent tariff on the goods they export to America.
"Indonesia will pay the United States a 19% Tariff on all Goods they export to us, while U.S. Exports to Indonesia are to be Tariff and Non Tariff Barrier FREE. If there is any Transshipment from a higher Tariff Country, then that Tariff will be added on to the Tariff that Indonesia is paying," the US President posted.
He thanked Indonesians for their "friendship and commitment" to balancing their trade deficit. "We will keep DELIVERING for the American people, and the People of Indonesia," Trump added.
This deal with the relatively minor trading partner of the US is among the handful of agreements struck so far by the Trump administration ahead of the August 1 deadline for tariffs on most US imports to rise again.
While detailed information about the deal is yet to be released, the rough outline provided by Trump reportedly resembled the framework agreement struck with Vietnam in recent weeks.
Indonesia's total trade deal with the US, just under $40 billion in 2024, does not rank in the top 15. However, it has been growing. Last year, US exports to Indonesia rose to 3.7 per cent, while imports were up by 4.8 per cent.
According to the US Census Bureau data on the International Trade Centre's TradeMap tool, the top US import categories from Indonesia 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, "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."
ALSO READ | Donald Trump releases new tariff letters for Mexico, European Union
The August 1 deadline on Trump's sweeping reciprocal tariffs gives the targeted countries time to crack a deal with Washington that could lower the threatened levies.
So far, framework agreements have been reached with Vietnam and the United Kingdom, and an interim deal has been made with China while negotiations continue to take place between Beijing and Washington.
Additionally, Trump said that negotiations with India were also moving in a similar direction.
"India basically is working along that same line. We're going to have access to India. And you have to understand, we had no access into any of these countries. Our people couldn't go in. And now we're getting access because of what we're doing with the tariffs," he said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hindustan Times
21 minutes ago
- Hindustan Times
EU Exports to U.S. Cool as Trans-Atlantic Trade Faces Tariff Test
Europe's exports to the U.S. fell for the second consecutive month in May after a first-quarter boom, but remained higher than a year earlier, a sign of resilience that will be tested as higher tariffs look set to become a settled feature of trans-Atlantic trade. Exports to the U.S. from the European Union edged down to 46.2 billion euros, or around $53.6 billion, in May from 47.6 billion euros a month earlier, statistics agency Eurostat said Wednesday. Overall exports fell 0.8%, with the EU's overall trade surplus rising to 13.4 billion euros. The EU's exports to the U.S. fell sharply in April after reaching a record high in March, when American importers stockpiled goods ahead of the Trump administration's impending tariff announcements. The U.S. and EU have been in talks over a trade agreement for months. President Trump in May threatened to jack up so-called reciprocal tariffs on EU goods of 50%, blaming the slow progress of trade talks, before backing down to allow negotiations to continue. Then Trump on Saturday said he would raise tariffs on most goods from the EU to 30% on Aug. 1. Goods are currently subject to a 10% baseline tariff, with car-parts and some metals subject to higher taxes. A 30% levy would strike at the core of Germany's export economy, Chancellor Friedrich Merz told German broadcaster ARD on Sunday. The U.S. last year overtook China as Germany's main trade partner, accounting for more than 250 billion euros in both exports and imports. Now trade barriers have seen Chinese goods being redirected to Europe and away from the American market. China's exports to the EU rose 7.6% on year in June, but exports to the U.S. sank 16%, according to official data published Monday. The EU's trade commissioner Maros Sefcovic said Monday that 30% tariffs would make it almost impossible to continue the current level of trade between the bloc and the U.S. 'Practically it prohibits trade,' he told reporters. 'Trading as we know it will not continue, with huge negative effects on both sides of the Atlantic.' Trump's tariff threats are already rattling some European manufacturers. ASML Holding, the Dutch chip-making equipment supplier and one of Europe's largest companies by market cap, said it could no longer guarantee growth in 2026 amid the uncertainty. Shares in Amsterdam sank in Wednesday morning trading. The U.S.-EU relationship accounts for about 30% of global goods trade, according to the European Council. The EU has threatened tariffs on 72 billion euros of U.S. goods including cars, planes and whiskey, should talks collapse. The uncertainty has already prompted the European Central Bank to publish forecasts that say the eurozone economy would grow significantly slower in a scenario in which the U.S. imposed even higher tariffs and the EU retaliated. Demand for Europe's goods is also being damped by the appreciation of the euro against the dollar, which makes products more expensive for importers. Much of Europe's economic growth in the early part of the year came from front-loading of exports. Some of that continues: eurozone non-durable goods production, which includes pharmaceuticals, rose in May at its fastest pace since records began in 1991. But Trump on Tuesday floated tariffs by the end of July on pharmaceuticals, which have yet to be subject to levies. The threat is particularly acute in some nations. Ireland's hosting of major medicine manufacturers means around one-third of its total exports went to the U.S. last year. Write to Ed Frankl at
&w=3840&q=100)
First Post
21 minutes ago
- First Post
Quiet storm in Pakistan: Asim Munir's unusual meetings with Zardari, Sharif stir coup speculation, again
The back-to-back meetings have, once again, stirred coup rumours in Pakistan's political circles as Munir engages with the top leadership to replace the president read more Pakistan's Prime Minister Shehbaz Sharif, along with Chief of the Army Staff (COAS) of Pakistan Asim Munir. Some suggest that the Sharif family may be involved in the possible coup. File image/Reuters While earlier speculations on a military coup in Pakistan have not died down yet, Chief of Army Staff Asim Munir met Prime Minister Shehbaz Sharif on Tuesday shortly after Sharif held a meeting with President Asif Ali Zardari at the latter's residence. The back-to-back meetings have, once again, stirred coup rumours in Pakistan's political circles as Munir engages with the top leadership to replace the president. According to a report by The Express Tribune, word of the town is that Islamabad is likely to invoke the 27th Amendment, followed by a resignation of President Zardari. STORY CONTINUES BELOW THIS AD 'Army has no interest in politics' The theory that military may take over the reins of the Pakistani government has been dismissed by Defence Minister Khawaja Asif, who has rejected media reports as lacking 'credibility'. Talking to the Express Tribune, Asif confirmed that while the possibility of President Zardari's resignation and a subsequent military takeover came up during the discussions between Munir and Sharif, he dismissed rumours and found claims made by Pakistani media 'unfounded.' He said that Zardari was well aware of the meeting between Sharif and Munir. 'Mr President was fully aware of the issue and expressed his full confidence in the government. It's all kite flying,' Asif asserted. 'Army chief has no interest in politics. He [Munir] doesn't need anything,' he added. Sharif denies claims, too Last week, PM Sharif said, 'Field Marshal Asim Munir has never expressed any desire to become the president, nor is there any such plan in the offing.' Interior Minister Mohsin Naqvi also criticised what he called a 'malicious campaign' targeting Pakistan's civilian and military leaders. In a post on X, Naqvi suggested that foreign groups were behind the dissemination of these rumours and said the government knows who is responsible for pushing this narrative. With inputs from agencies
Indian Express
21 minutes ago
- Indian Express
Crypto Week legislation snag: Trump steps in to broker agreement as GENIUS Act faces vote hurdle
The week of July 14, dubbed 'Crypto Week' by US President Donald Trump and key Republicans in the House of Representatives, hit a rough patch on Tuesday when hardline conservatives opposed the GENIUS Act bill during a procedural vote. This prompted House Speaker Mike Johnson to cancel the remaining votes. In a statement from the House Majority Whip's office, members were advised that votes are expected in the House on Wednesday. Trump moved to control the potential damage by meeting 'with 11 of the 12 Congressmen/ women necessary to pass the GENIUS Act,' he said in a post on Truth Social. He said the members had agreed to 'vote tomorrow morning in favour of the Rule.' Cryptocurrency prices tanked briefly from highs touched in the run-up to Crypto Week in the US. Flagship cryptocurrency Bitcoin witnessed an over 9 per cent rally in its value, crossing the $1,20,000-mark for the first time ever early on Tuesday morning. Since the vote, BTC's value has moderated to $118,227.41 at 1:35 PM IST. However, Ethereum has rebounded from initial lows after the House vote went counter to expectations, and surged to $3,166.53 at the time of writing from lows of $2,166.57 apiece on Tuesday. The week of July 14 has been described as 'Crypto Week' by mainly Republican legislators since the House of representatives is set to discuss and vote on three bills that are important for the formalisation of cryptocurrency in America — the Digital Asset Market Clarity (CLARITY) Act which seeks to set guardrails for cryptocurrencies, the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act on issuance of asset-backed cryptocurrencies, and the Anti-CBDC Surveillance State Act, which aims to shoot down potential digital currency issuance by the US Federal Reserve citing fears of government snooping. Stablecoin issuer Circle Internet Group's stock price was down over 4 per cent to $195.33 apiece at market closing on Tuesday. Circle, which listed on exchanges in June has witnessed an upsurge backed by expectations of enabling crypto legislation under Trump's leadership. Bitcoin miner MARA Holdings' stock was down 2.34 per cent and exchange operator Coinbase's scrip slipped 1.5 per cent at market closing on Tuesday. To be sure, all of the stocks mentioned above showed a positive uptick in pre-market indications, potentially in response to Trump's intervention late on Tuesday. In an article in the publication The Hill, French Hill, the chairman of the US House of Representatives' Committee on Financial Services, wrote, 'We will continue to lead the way towards clear digital asset regulation, and we look forward to putting legislation on President Trump's desk soon.' Hill wrote that stablecoins, proposed to be regulated under the GENIUS Act bill, 'hold promise as a potential cornerstone of a modern payment system, if issued under a clear regulatory framework.' However, the GENIUS Act bill, along with the others mentioned above, has been criticised for being 'written by and for the crypto industry,' as US House Representative Maxine Waters wrote in an article for MSNBC. She compared the 'innovation' planks being used to back these bills to the one used to dissolve the 'firewall between commercial and investment banking, allowing banks, brokers and insurers to combine into mega financial 'supermarkets''. Waters also mentioned US President Trump's family interests in cryptocurrencies which have earned them nearly $1.2 million so far, according to calculations made by Forbes. The US House of Representatives is scheduled to hold another vote on the bill at around 12:20 PM EST (9:50 pm IST) on Wednesday, Crypto America reported citing a schedule shared by House Majority leader Steve Scalise.
