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Trump announces 19% tariff on Indonesian goods under new trade deal

 Published: 11:32, 16 July 2025

Trump announces 19% tariff on Indonesian goods under new trade deal

US President Donald Trump announced a new trade deal with Indonesia that includes a reduced 19% tariff on Indonesian goods entering the US—down from the previously threatened 32%. In exchange, Indonesia has committed to purchasing $15 billion in US energy, $4.5 billion in agricultural products, and 50 Boeing jets, many of them 777s.

The agreement, finalized after a call with Indonesian President Prabowo Subianto, aims to avoid steeper tariffs and crack down on transshipped goods. However, the timeline for implementing the lower tariff and fulfilling purchase commitments remains unclear.

The deal comes amid broader US efforts to strike trade agreements ahead of an August 1 tariff hike deadline. Trump has already made similar pacts with Britain, Vietnam, and China, and is in talks with India and the EU. Since April, he has threatened or outlined tariffs for over 20 countries, with letters sent to partners like Japan, South Korea, Malaysia, Canada, and Mexico.

Analysts warn that without finalized deals, Trump’s tariff-driven strategy may be viewed as ineffective.