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Mint
4 days ago
- Business
- Mint
Trump announces 19% tariff on Indonesian imports, says US gets free export access under new deal
US President Donald Trump on Tuesday revealed a new trade agreement with Indonesia that includes a 19% tariff on Indonesian goods entering the United States, part of a broader push by the administration to renegotiate trade deals and slash the US trade deficit. The deal also includes significant commitments from Indonesia to purchase American goods, according to Trump. "Indonesia will pay the United States a 19% Tariff on all Goods they export to us, while U.S. Exports to Indonesia are to be Tariff and Non Tariff Barrier FREE," Trump wrote on Truth Social, adding that the US would gain full access to Indonesian markets. He claimed on Truth Social that Indonesia had agreed to purchase $15 billion in US energy products, $4.5 billion in agricultural goods, and 50 Boeing jets—though no timeline for these transactions was provided. The Indonesia deal mirrors a recent framework agreement with Vietnam and is part of Trump's strategy to impose higher tariffs unless countries strike bilateral trade deals with the US. The administration has set an August 1 deadline after which most US import tariffs will increase unless agreements are reached. Trump had earlier warned Indonesia of a possible 32% tariff unless a deal was reached. Similar letters were sent to over two dozen countries, including Canada, Japan, and Brazil, proposing tariffs ranging from 20% to 50%, including a 50% levy on copper. In Jakarta, Susiwijono Moegiarso, a senior official with Indonesia's Coordinating Ministry for Economic Affairs, confirmed that the two countries are preparing a joint statement detailing the tariff levels and associated trade arrangements. 'We will inform [the public] soon,' he told Reuters via text message. While Indonesia is not a top-15 US trading partner, trade has grown steadily. In 2024, total bilateral trade reached just under $40 billion, with the US. running a goods trade deficit of nearly $18 billion. Indonesia's top exports to the US include palm oil, footwear, electronics, rubber, tires, and frozen shrimp. As Trump's tariff deadline looms, global markets are watching closely. The White House has so far secured limited deals with the UK, Vietnam, a partial tariff truce with China, and now Indonesia—while major trading blocs like the EU brace for an all-out trade war.
Yahoo
5 days ago
- Business
- Yahoo
Trump Says Indonesian Goods to Face 19% Tariff Under Trade Pact
(Bloomberg) — US President Donald Trump said he reached a deal with Indonesia that will see goods from the country face a 19% tariff, while US exports will not be taxed. 'They are paying 19 percent and we are not paying anything,' Trump told reporters Tuesday at the White House. 'We are going to have full access to Indonesia.' Trump has sent tariff letters over the last week to multiple trading partners, increasing pressure on negotiators ahead of an Aug. 1 deadline for higher duties to take effect. A pact with Indonesia, which was threatened with a 32% tariff, would be the first struck with a country targeted by one of those messages to reduce their rate. Trump announced the accord earlier on social media, without providing any specifics. He said he dealt directly with Indonesian President Prabowo Subianto to finalize the deal. Indonesia is preparing a joint statement with the US that will detail additional information, including non-tariff measures and commercial agreements, Coordinating Ministry for Economic Affairs Secretary Susiwijono Moegiarso said in a text message late Tuesday in Jakarta. Indonesia's top negotiator Minister Airlangga Hartarto last week met with US officials, including Trade Representative Jamieson Greer, Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent, to hash out an improved deal. Southeast Asia's largest economy had earlier proposed near-zero tariffs on about 70% of US imports, as well as business deals in critical minerals, energy, agriculture and defense, but that failed to convince Trump to lower the levy on Indonesian goods from the 32% rate he first set back in April. Markets have been in wait-and-see mode on Trump's trade proclamations, given he has changed rates and deadlines multiple times since he announced country-by-country tariffs on April 2 and then quickly paused them. The iShares MSCI Indonesia ETF rose as much as 0.7% Tuesday morning New York time after Trump's post, while the S&P 500 was little changed. 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. The pacts have thus far fallen short of full-fledged trade deals, with many details left to be negotiated later. Trump provided no paper to back up last week's claim of a deal with Vietnam. The country's leadership was caught off guard by Trump's declaration that Hanoi agreed to a 20% tariff, and the Vietnamese government is still seeking to lower the rate, according to people familiar with the matter. Trump has kept foreign governments and investors on edge about his tariff agenda, with partners rushing to avoid higher import taxes and markets facing yet another dose of uncertainty. The US president indicated Monday he preferred to stick with the levies in his letters, saying, 'I really don't want deals. I just want the paper to get sent.' The president also said he was willing to continue talks with major economies, including the European Union. Trump over the last week unleashed a barrage of tariff demand letters, informing other economies of new duties set to begin Aug. 1 if they cannot negotiate better terms with the US. The letters extended what was initially a July 9 deadline for another three weeks, setting off another frantic dash of negotiations. The slew of tariff threats from Trump have prompted economies to broaden trade ties beyond the US; Indonesia reached a tentative economic agreement with the EU over the weekend. 'There is quite a level of frustration with these deals and more talk about exploring those other options, to include Europe,' said Erin Murphy, senior fellow on emerging Asia economics at the Center for Strategic and International Studies. Southeast Asian nations — loathe to choose between the US and China — have long been caught in the middle of economic and political battles between the two superpowers. While Vietnam is is said to be further along in trade negotiations with the US, Thailand is in ongoing talks and mulling how to reduce US duties without giving away too much and stoking domestic unrest. Philippine officials also are pushing to secure a pact ahead of the new deadline, with President Ferdinand Marcos Jr. set to visit Washington later this month in an effort to reduce or eliminate Trump's planned 20% tariff on the island nation. —With assistance from Grace Sihombing and Claire Jiao. ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Trump Says Indonesian Goods to Face 19% Tariff Under Trade Pact
(Bloomberg) — US President Donald Trump said he reached a deal with Indonesia that will see goods from the country face a 19% tariff, while US exports will not be taxed. 'They are paying 19 percent and we are not paying anything,' Trump told reporters Tuesday at the White House. 'We are going to have full access to Indonesia.' Trump has sent tariff letters over the last week to multiple trading partners, increasing pressure on negotiators ahead of an Aug. 1 deadline for higher duties to take effect. A pact with Indonesia, which was threatened with a 32% tariff, would be the first struck with a country targeted by one of those messages to reduce their rate. Trump announced the accord earlier on social media, without providing any specifics. He said he dealt directly with Indonesian President Prabowo Subianto to finalize the deal. Indonesia is preparing a joint statement with the US that will detail additional information, including non-tariff measures and commercial agreements, Coordinating Ministry for Economic Affairs Secretary Susiwijono Moegiarso said in a text message late Tuesday in Jakarta. Indonesia's top negotiator Minister Airlangga Hartarto last week met with US officials, including Trade Representative Jamieson Greer, Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent, to hash out an improved deal. Southeast Asia's largest economy had earlier proposed near-zero tariffs on about 70% of US imports, as well as business deals in critical minerals, energy, agriculture and defense, but that failed to convince Trump to lower the levy on Indonesian goods from the 32% rate he first set back in April. Markets have been in wait-and-see mode on Trump's trade proclamations, given he has changed rates and deadlines multiple times since he announced country-by-country tariffs on April 2 and then quickly paused them. The iShares MSCI Indonesia ETF rose as much as 0.7% Tuesday morning New York time after Trump's post, while the S&P 500 was little changed. 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. The pacts have thus far fallen short of full-fledged trade deals, with many details left to be negotiated later. Trump provided no paper to back up last week's claim of a deal with Vietnam. The country's leadership was caught off guard by Trump's declaration that Hanoi agreed to a 20% tariff, and the Vietnamese government is still seeking to lower the rate, according to people familiar with the matter. Trump has kept foreign governments and investors on edge about his tariff agenda, with partners rushing to avoid higher import taxes and markets facing yet another dose of uncertainty. The US president indicated Monday he preferred to stick with the levies in his letters, saying, 'I really don't want deals. I just want the paper to get sent.' The president also said he was willing to continue talks with major economies, including the European Union. Trump over the last week unleashed a barrage of tariff demand letters, informing other economies of new duties set to begin Aug. 1 if they cannot negotiate better terms with the US. The letters extended what was initially a July 9 deadline for another three weeks, setting off another frantic dash of negotiations. The slew of tariff threats from Trump have prompted economies to broaden trade ties beyond the US; Indonesia reached a tentative economic agreement with the EU over the weekend. 'There is quite a level of frustration with these deals and more talk about exploring those other options, to include Europe,' said Erin Murphy, senior fellow on emerging Asia economics at the Center for Strategic and International Studies. Southeast Asian nations — loathe to choose between the US and China — have long been caught in the middle of economic and political battles between the two superpowers. While Vietnam is is said to be further along in trade negotiations with the US, Thailand is in ongoing talks and mulling how to reduce US duties without giving away too much and stoking domestic unrest. Philippine officials also are pushing to secure a pact ahead of the new deadline, with President Ferdinand Marcos Jr. set to visit Washington later this month in an effort to reduce or eliminate Trump's planned 20% tariff on the island nation. —With assistance from Grace Sihombing and Claire Jiao. ©2025 Bloomberg L.P.
