Indonesia trade deal will remove critical-mineral export restrictions: WH

New York Post

12 hours ago

WASHINGTON — Indonesia will remove restrictions on its critical-mineral exports to the US as part of the countries' new tariff agreement, the White House revealed Tuesday.
President Trump had announced last week that he would be settling for a 19% tariff rate on the world's fourth most populous country, just a week after threatening a 32% rate.
In addition to agreeing to the new nearly 20% rate, Indonesia — an archipelago of more than 17,500 islands — also said OK to removing export restrictions on critical minerals and verification requirements on imports of US goods, a White House official told reporters Tuesday.
Indonesia will meanwhile levy a 0% tariff on more than 99% of US goods and will eliminate nearly all trade barriers, the official said.
3 President Trump announced Indonesia will open its market up to the US in exchange for Trump imposing a 19% tariff.
Getty Images
At the start of his trade war announcement in April, Trump claimed that Indonesia was charging up to 64% on some US goods.
'The United States of America will now sell American Made products to Indonesia at a Tariff Rate of ZERO, while Indonesia will pay 19% on all of their products coming into the U.S.A. — The Best Market in the World!' Trump wrote on Truth Social.
'In addition, Indonesia will supply the United States with their precious Critical Minerals, as well as sign BIG Deals, worth Tens of Billions of Dollars, to purchase Boeing Aircraft, American Farm products, and American Energy,' the president said.
Trump said last week that the 'biggest part of the deal' is Indonesia opening up its markets to US exports by lowering restrictions — and also by freeing up the country's copper ore exports.
'One of the things, as you know, they're known for is very high-quality copper, which we will be using,' Trump said at the time.
The deal also includes provisions for Indonesia to accept imports of US vehicles built to US federal motor vehicle safety and emissions standards and 'accepting FDA certificates and prior marketing authorizations for medical devices and pharmaceuticals,' according to the White House.
3 Containers are stacked on a cargo ship at the Jakarta International Container Terminal in Tanjung Priok Port, Jakarta, earlier this month.
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The US imports textiles, agricultural products and machinery from the island country. In 2022, the import numbers totaled $34.5 billion.
Its top trading partners are China and the US, and the White House pointed to the population of the country — more than 280 million — as evidence of the importance of the deal.
'Indonesia is one of the largest countries in the world to represent the vast consumer markets that we want to ship to,' a Trump administration official said on a phone call with reporters.
3 Indonesian President Prabowo Subianto gestures as he speaks to the media upon arrival from his overseas trip at Halim Perdanakusuma Airbase in Jakarta, Indonesia, last week.
AP
The deal with Indonesia is just one of several the Trump administration has made in its ongoing global trade negotiations.
Trump announced a 19% tariff agreement with the Philippines earlier Tuesday and is looking to strike more agreements before Aug. 1, when the administration has threatened to hike tariff rates on countries who haven't come to the table.