Trump says 19% tariff deal reached with Indonesia
July 15 (UPI) -- U.S. President Donald Trump said Tuesday that a trade deal with Indonesia was reached to set 19% tariffs on its U.S. exports.
But it was not immediately clear if Indonesian officials had approved the deal's terms.
"We will pay no tariffs," the president said to the press outside the White House. "So they are giving us access into Indonesia, which we never had."
Trump said that's "probably" the biggest part of the preliminary deal and the other that Indonesia will pay a 19% duty.
He claimed later in a social media post that Indonesia, as part of the deal, reportedly "committed to purchasing $15 Billion Dollars in U.S. Energy, $4.5 Billion Dollars in American Agricultural Products, and 50 Boeing Jets, many of them 777's."
America's 2024 trade deficit with Jakarta ran more than $17 billion. Oilseeds, grain along with oil and gas were the top U.S. exports to Indonesia.
A 19% tariff rate would stand in contrast to his initial threat of 32% on imported goods. According to the U.S. Commerce Department, Indonesia is one of the top 25 U.S. trading partners with over $38 billion exchanged in goods last year.
On Tuesday, Commerce Secretary Howard Lutnick suggested in a television interview that the south Asian nation may drop its U.S. tariffs as as facet to the new deal.
"No tariffs there. They pay tariffs here," he said.
Trump added in a Truth Social post that the agreement arrived as a direct deal with Indonesia's President Prabowo Subianto.
"I spoke to their really great president, very popular, very strong, smart, and we made the deal," he said in Washington later on Tuesday.
Indonesia is the world's third biggest copper exporter.
Trump on his way to Pittsburg in the day stated that Indonesia "has some great products," saying that "one of the things, as you know, they're known for is very high-quality copper, which we will be using."
But it was also unclear if this new trade deal will give an exception to Trump's looming 50% global tariff on metal set to begin in August.
Meanwhile, June's Consumer Price Index released Tuesday showed that annual inflation grew to around 2.7%, which has put a damper on Trump's plan to drive down borrowing costs.
This week in Washington
President Donald Trump speaks to members of the media on the South Lawn of the White House before boarding Marine One on Tuesday. Trump will announce $70 billion in artificial intelligence and energy investments in Pennsylvania on Tuesday, the latest push from the White House to speed up development of the emerging technology. Photo by Al Drago/UPI | License Photo
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