Indonesia to cut tariffs, barriers in new US trade deal
Trump hailed the deal, which he first announced on July 15, in a posting on his Truth Social media platform, calling it a "huge win for our Automakers, Tech Companies, Workers, Farmers, Ranchers, and Manufacturers."
Details of a framework for the accord were released in a joint statement by both countries, and a fact sheet issued by the White House. They said negotiators for both countries would finalise the actual agreement in coming weeks.
"Today, the United States of America and the Republic of Indonesia agreed to a framework for negotiating an agreement on reciprocal trade to strengthen our bilateral economic relationship, which will provide both countries' exporters unprecedented access to each other's markets," the statement said.
The Indonesia deal is among only a handful reached so far by the Trump administration ahead of an August 1 deadline when higher tariffs are due to kick in.
The US tariff rate on Indonesia, Southeast Asia's largest economy, matches the 19 per cent announced for the Philippines earlier on Tuesday. Vietnam's tariff rate has been set at 20 per cent.
Under the agreement, Indonesia will immediately drop its plans to levy tariffs on internet data flows and it agreed to support renewal of a longstanding World Trade Organization moratorium on e-commerce duties, a senior Trump administration official told reporters on a conference call.
Indonesia also will remove recently enacted pre-shipment inspections and verifications of US exports that have posed problems for US agricultural exports and contributed to a growing US farm trade deficit, the official said.
The official, who was not authorised to speak publicly, said the agreement could help restore the surplus in agricultural goods that the United States once had with Indonesia, until it implemented the pre-shipment requirements.
In a win for US automakers, the official said Indonesia has agreed to accept US Federal Motor Vehicle Safety Standards for vehicles exported from the United States to the growing country of 280 million people.
Indonesia also has agreed to remove export restrictions on industrial commodities, including critical minerals, the joint statement said. The US official said it would also remove local content requirements for products using these commodities that were shipped to the United States.
The joint statement said the US would reduce the reciprocal tariff rate to 19 per cent, and "may also identify certain commodities that are not naturally available or domestically produced in the United States for a further reduction in the reciprocal tariff rate".
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Age
an hour ago
- The Age
AUKUS agreement: Trump official questions Australia's commitment amid Pentagon review
'That's still a jump ball as far as I'm concerned. Because the Australians have been noticeably fickle. We need to understand, Australia has a population of around 30 million people. It's a remarkably small tax base, and they are making a significant tax investment in this over the next 10 years.' A jump ball in basketball is similar to a ball-up in Australian Rules Football, where either team has a chance of gaining control of the play. Both Labor and the Coalition have expressed consistent commitment to AUKUS. Hendrix has also argued AUKUS does not provide enough capacity for Australian shipyards to repair American and British submarines, as well as Australian ones, and the US should 'more heavily leverage' the agreement. He has said of Australia and the Philippines: 'We're going to need them and their assistance and their basing rights and infrastructure, and I don't think they're ready to host Americans in the way that we're going to need to be hosted to do a counter-campaign to the Chinese invasion.' Hendrix appears to have deleted a number of posts on X about Australia and AUKUS. In one that is still online, from April 2024, he said there were two key questions – 'whether the Australian government will sustain their commitment across the coming years and change of governments', and 'whether the US will actually be willing to give up Virginia-class boats'. Loading Last week, Hendrix welcomed a news story that reported the Pentagon was asking Australia and Japan to make clear commitments about what they would do in a conflict between the US and China over Taiwan. 'Given these nations [are] critical [to] the task of logistically supporting US forces should we come to the aid of Taiwan, this inquiry is legitimate,' he said. 'I would be shocked to find that the previous administration hadn't asked the partners.' Reached by text, Hendrix declined to comment and referred questions to the White House. Spokeswoman Anna Kelly supplied a statement that said US shipbuilding had been neglected for decades and would be boosted by a $US43 billion ($66 billion) investment in the president's One Big Beautiful Bill. 'No president has done more to bolster American maritime power, and his White House Office of Shipbuilding will operate under the Office of Management and Budget,' she said. In their letter to Hegseth, Republican committee chair John Moolenaar and Democratic representative Raja Krishnamoorthi said AUKUS had bipartisan support in Congress for a reason, and that it would strengthen US security as well as that of Australia and the United Kingdom. They noted Beijing's 'unprecedented' live-fire exercises in the Tasman Sea in February. Secretary of Defense Pete Hegseth watches a display of drone technology at the Pentagon on Wednesday. Credit: AP 'This attempt to project power as far south as New Zealand's front door highlights the importance of AUKUS in cementing ties to longstanding allies like Australia, as well as advancing vital undersea capabilities that will be central to deterrence,' they wrote. 'We are stronger together under the AUKUS framework.' The committee will hold a hearing on Wednesday in Washington on strategies to counter economic coercion by the Chinese Communist Party against democracies. Former Australian prime minister Scott Morrison, who brokered the AUKUS deal, is scheduled to appear, as is former US senator and ambassador to Japan Rahm Emanuel. Undersecretary of defence for policy Elbridge Colby, who is heading the Pentagon's AUKUS review, has posted actively on social media over the past fortnight, doubling down on his calls for American allies to 'step up'. Loading 'No one at the Pentagon is asking for a blank cheque from our allies. Rather, the United States and our allies all benefit from a reasonable expectation of what contributions we can anticipate each other to make,' he said on Monday, US time. 'That is why we are working closely with our allies to align expectations, an approach akin to what we have with NATO and South Korea. This will make our alliances sturdier and more equitable. That's just common sense.' Get a note directly from our foreign correspondents on what's making headlines around the world. Sign up for our weekly What in the World newsletter.
7NEWS
2 hours ago
- 7NEWS
Fast food giants eye Australian consumers as pretzel empire opens its first local store
A proud American institution has opened its doors for the first time in Australia, offering something a little different to most US fast food empires. Auntie Anne's famous pretzels, hotdogs and ice cream delights will be available to Sydneysiders from Saturday, with the first store opening its doors at Westfield Parramatta. And it isn't likely to be the only one, with Popeyes, Jollibee and Firehouse Subs looking for store locations to bring over their popular goods for Australian consumers. Auntie Anne's was started in 1988 when founder Anne Beiler bought a stand in a Pennsylvania farmer's market. She started baking pretzels to help fund her husband's desire to provide free family counselling services for their community. Her husband's dream ultimately came true with the popularity of the now-international pretzels. Executive Director of Food, Beverage and Agribusiness Insights at ANZ, Michael Whitehead, isn't surprised by the interest of the US fast-food chains. 'Australians cannot get enough chicken in our fast-food restaurant — it has become the dominant meat,' he told 7NEWS. 'We will see people flocking to it — trying it — and people from all demographics.' Popeyes chicken, which is known for its 'mouth-watering crunch and juicy fried chicken bursting with Louisiana flavour', is planning to rival Australian favourite, KFC. Red Rooster, Oporto and KFC currently dominate Australia's takeaway chicken market. Popeyes' potential expansion to the local market would be the latest US venture to hit Australian shores, following the likes of Wendy's, In-N-Out Burger and Chuck E. Cheese. Currently, there is no information about where or when Popeyes is planning to open. Popular chain Jollibee is also planning to open in Sydney, with a potential location in Campbelltown according to Delicious. The Filipino fast-food giant offers burgers, named Yumburgers, with chicken. But something never offered by a fast-food giant before is its ready-to-eat spaghetti. Sandwich king Firehouse Subs, meanwhile, is blazing a trail into Australia with plans to open 165 locations across the country over the next decade. The first restaurant will open in south-east Queensland in late 2025, marking the start of the brand's ambitious expansion into the Australian market.
AU Financial Review
2 hours ago
- AU Financial Review
PM lifts US beef ban, paves way for Trump tariff talks
The Albanese government has lifted the biosecurity restrictions on US beef, paving the way for the full resumption of exports to Australia, and removing the key excuse given by the Trump administration for imposing steep tariffs on its supposed friend and ally. A government source, speaking on condition of anonymity, insisted the move, which was communicated to the US government overnight Wednesday (AEST), was based on scientific advice following a review of the restrictions initiated more than 18 months ago, before Donald Trump was elected president for a second term.
