New Trump‑Indonesia Trade Deal: 19% Tariff and $20 Billion Commitments
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On July 15, 2025, President Trump unveiled a new trade deal with Indonesia, reducing threatened tariffs from 32% to a flat 19%, following high‑stakes negotiations .
Deal highlights include:
- Indonesia pays 19%, not 32%, on exports to the U.S.; U.S. pays nothing on its exports to Indonesia.
- Indonesia agrees to purchase $15 billion in American energy, $4.5 billion in farm goods, and 50 Boeing jets .
- U.S. businesses gain full market access in Indonesia—marking a breakthrough in sectors like textiles, agriculture, electronics, and critical minerals .
Trump called it a “great deal for everybody,” stressing the importance of opening Indonesian markets for U.S. exporters . His threats and approach reflect a continuing push to correct trade imbalances and raise U.S. tariff baselines globally .
Jakarta sees a “new era”—Prabowo praised Trump’s style as “tough negotiator,” while analysts anticipate positive GDP and stock market effects . However, economists caution that U.S. tariffs may fuel domestic inflation (June CPI rose 2.7%), complicating Federal Reserve policy .
As August 1 looms and other nations await their tariff letters, this Indonesia agreement signals a dramatic shift in global trade dynamics—one that could reshape supply chains and price structures worldwide .
