President Donald Trump has announced that the United States will impose a 19 percent tariff on imports from Indonesia under a new trade agreement, as part of his administration’s broader effort to renegotiate trade deals and reduce the U.S. trade deficit.
According to Trump, the deal mirrors a recent agreement with Vietnam and includes zero tariffs on U.S. exports to Indonesia, a penalty for transshipments of Chinese goods, and Indonesian commitments to purchase $15 billion in U.S. energy, $4.5 billion in agricultural products, and 50 Boeing aircraft.
The move comes ahead of an August 1 deadline, after which tariffs on most U.S. imports are set to increase. Trump had previously threatened Indonesia with a 32 percent tariff if no agreement was reached. Indonesia is currently not among the U.S.’s top 15 trading partners, but trade between the two nations has been rising, with a U.S. goods trade deficit of nearly $18 billion in 2024.
Top U.S. imports from Indonesia include palm oil, electronics, footwear, tires, natural rubber, and frozen shrimp.
A senior Indonesian official confirmed that a joint statement on the tariff arrangement and related commercial agreements is being prepared.
Trump’s broader trade agenda has drawn global criticism and market uncertainty. He has sent similar tariff threat letters to over 20 countries, including Canada, Japan, and Brazil, and has proposed tariff rates as high as 50 percent on certain goods, including copper.
The European Union, bracing for possible 30 percent U.S. tariffs from August 1, is preparing retaliatory tariffs on €72 billion worth of U.S. goods, including Boeing aircraft, whiskey, cars, medical devices, and agricultural products.
Despite a chaotic rollout, Trump has secured preliminary deals with the United Kingdom, Vietnam, and China, and claims progress with India. However, he has so far fallen short of his earlier promise to deliver “90 deals in 90 days.”
