In New Deal, Trump Keeps Tariffs While Indonesia Drops Trade Barriers
In a call with reporters, a senior official who declined to be named said that Indonesia had agreed to drop its tariff on nearly all American imports to zero, while the United States would maintain a 19 percent tariff on Indonesian products.
That tariff would increase significantly for goods that are made in Indonesia but contain a certain percentage of parts or raw materials from countries designated as nonmarket economies, a list that includes China, Russia and Vietnam. Those products would face a 40 percent rate when entering the United States, the official said. The administration did not specify what percentage of products would qualify for the higher tariff.
The comments provided more insight into the series of hasty deals that the Trump administration is negotiating with trading partners around the world ahead of a self-imposed Aug. 1 deadline. As Mr. Trump seeks to reorder America's trading relationships, the White House has reached framework agreements with Britain, Vietnam and Indonesia, as well as a trade truce that rolled back some tariffs with China.
But Mr. Trump has typically announced these deals on his social media account, without providing details about what was agreed to. The White House has released more information hours or days later, or, in the case of the Vietnam deal, which Mr. Trump announced July 2, not at all.
For instance, Mr. Trump announced that he had reached a trade deal with the Philippines, after a meeting at the White House on Tuesday with President Ferdinand Marcos Jr. Mr. Trump wrote on Truth Social that he had a 'beautiful visit' with Mr. Marcos and cemented a trade deal that would put a 19 percent tariff on exports from the Philippines. American goods going into the country would face zero tariffs, he said, and the countries would expand their military cooperation. No other details have been announced confirming the terms.
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