Trump says deal struck with Indonesia, provides no details
'Great deal, for everybody, just made with Indonesia. I dealt directly with with their highly respected President. DETAILS TO FOLLOW!!!' the US president posted on Tuesday (Jul 15) on social media.
The announcement comes after the US president last week threatened to impose a 32 per cent tariff on Indonesian goods starting Aug 1. The country afterwards sent its top trade negotiator to meet with Trump Cabinet officials in order to to secure an agreement.
Indonesia's Coordinating Minister for Economic Affairs Airlangga Hartarto presented several business deals in meetings with US officials, including US Trade Representative Jamieson Greer, Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent, according to the ministry.
An agreement with Indonesia would be the fourth trade framework Trump has announced with foreign governments, after Vietnam and the UK. The US and China also reached a tariff truce that includes the planned resumption of critical minerals and technology trade between the world's two largest economies.
Pacts announced by Trump have thus far fallen short of full-fledged trade deals, with many details left to be negotiated later. Vietnam's leadership was caught off guard by Trump's declaration that Hanoi agreed to a 20 per cent tariff, and the country is still seeking to lower the rate, according to people familiar with the matter. BLOOMBERG
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'Mr Trump's public acknowledgment of a direct deal with Mr Prabowo suggests that Indonesia took an active role in shaping the outcome,' he said, adding that this highlights how both leaders prefer a personal, transactional style of diplomacy. Other experts, however, cautioned that the deal may carry ripple effects across Indonesia's wider network of economic relationships. Mr Muhammad Habib Abiyan Dzakwan from the Centre for Strategic and International Studies (CSIS) warned that the nature of the arrangement, involving significant import concessions, could prompt demands from other economic partners. 'What I am concerned the most is the extent of this unusual arrangement would then affect Indonesia's relations with Asean neighbours and Free Trade Agreement partners. More partners will likely demand the same concession from Indonesia,' he said. 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CNA
an hour ago
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