Trump to impose 19% tariff on Indonesian goods

Trump to impose 19% tariff on Indonesian goods

President Donald Trump announced a new trade agreement with Indonesia on Tuesday, July 22, 2025. The agreement, dubbed the "Agreement on Reciprocal Trade," will see Indonesia impose a 19% tariff on its exports to the United States. This tariff rate is significantly lower than the 32% blanket duty that Indonesia initially faced under Trump's "liberation day" tariff plan in April [1].

The agreement, which follows similar deals with the United Kingdom and Vietnam, aims to address non-tariff barriers and other obstacles that the U.S. faces in Indonesian markets. Indonesia has agreed to drop its tariffs to zero on over 99% of its trade with the U.S. and eliminate all non-tariff barriers [3].

Under the new agreement, Indonesia will purchase $3.2 billion worth of aircraft from Boeing and $15 billion in energy products from the U.S. Additionally, the U.S. will receive unprecedented access to Indonesia's market, which has a population of over 280 million people [1].

U.S. Trade Representative Jamieson Greer stated, "Today's announcement shows that America can defend its domestic production while obtaining expansive market access with our trading partners." Greer also noted that the agreement will provide greater certainty for the digital services sector and benefit American producers who have long faced high tariffs and burdensome requirements [1].

The deal is significant as it opens new markets for the U.S. and eliminates non-tariff barriers on U.S. exports. It also reaffirms the Trump administration's strategy of using high tariff rates to extract concessions from trade partners under its "America First" approach [3].

Trump has also hinted at potential tariffs on pharmaceuticals and semiconductors by the end of the month, suggesting that similar trade agreements with other countries, including India, could follow [2].

References:
[1] https://www.cnbc.com/2025/07/22/trump-indonesia-trade-tariffs-framework.html
[2] https://koreajoongangdaily.joins.com/news/2025-07-16/world/world/Trump-announces-19-percent-tariff-on-Indonesian-goods-as-new-trade-agreement-is-finalized/2354317
[3] https://www.thenationalnews.com/news/us/2025/07/22/indonesia-us-deal-tariffs/