Washington, D.C., July 16 — Former U.S. President Donald Trump has announced a new bilateral trade agreement with Indonesia, which includes significant tariff changes and major purchase commitments from the Southeast Asian nation.
Trump made the announcement on his platform, Truth Social, after a direct conversation with Indonesian President Prabowo Subianto. The deal, which Trump claims is now finalized, features zero tariffs on U.S. exports to Indonesia, while a 19% tariff will be applied to Indonesian goods entering the United States.
Key Trade Terms and Economic Commitments
In his social media post and subsequent comments to reporters, Trump stated that the agreement includes Indonesia’s commitment to purchase:
- $15 billion in U.S. energy products
- $4.5 billion in American agricultural goods
- 50 Boeing aircraft, including several Boeing 777 jets
These purchases are expected to significantly benefit American manufacturing, agriculture, and aviation sectors.
Indonesia Yet to Confirm Full Details
While Trump declared the deal final, Indonesian officials have not yet released an official confirmation. Susiwijono Moegiarso, a senior official with Indonesia’s Coordinating Ministry for Economic Affairs, said a joint statement is being prepared and would cover tariff structures, non-tariff policies, and commercial arrangements. “We will inform the public soon,” Moegiarso told Reuters.
Focus on Copper, Future Tariffs Still Unclear
Trump also mentioned the possibility of reducing or removing tariffs on Indonesian copper, which he described as “high quality.” This comes ahead of his proposed 50% tariff on all copper imports, set to begin on August 1. Last year, Indonesia exported only $20 million worth of copper to the U.S., far behind major suppliers like Chile ($6 billion) and Canada ($4 billion).
U.S. Commerce Secretary: “Asymmetry Switched in Our Favor”
Commerce Secretary Howard Lutnick emphasized that the deal reverses previous trade imbalances. “No tariffs there; they pay tariffs here. Switching the asymmetry our way,” Lutnick said during an interview with CNBC.
Deal Follows Series of Trump Trade Announcements
This agreement is the fourth trade deal Trump has announced in recent months, including a similar post regarding Vietnam. However, details of that deal remain unreleased. Trump also hinted that India may soon reach a similar agreement.
Earlier this year, Trump introduced a 32% tariff on certain imports, later scaled back to a minimum 10% for most countries, set to expire on August 1 unless extended.
Concerns Over Volatile Trade Policy
Business leaders remain concerned about Trump’s unpredictable trade strategy. Some fear that sudden tariff hikes could disrupt global supply chains and increase prices for American consumers. While Trump urges companies to relocate manufacturing to the U.S., experts say doing so involves high costs, workforce shortages, and years of setup.
Indonesia: A Growing Trade Partner
According to the U.S. Commerce Department, Indonesia ranks as the 23rd-largest U.S. trading partner. In 2023, the United States imported $28 billion in goods from Indonesia, mainly apparel and footwear, while exporting $10 billion, largely in oilseeds, grains, and energy products.
As of now, the Indonesian government has not responded to media requests for further comment.
Leslie Rajan 
Sekar Rao