Trump announces new tariff rate for Indonesia after striking "great" trade deal

Washington DC - President Donald Trump said Tuesday that he had struck a trade pact with Indonesia, resulting in a lower US tariff on the country's goods than earlier threatened, alongside better market access.

US President Donald Trump said Tuesday that he had struck a trade pact with Indonesia, resulting in a lower US tariff on the country's goods than earlier threatened, alongside better market access.
US President Donald Trump said Tuesday that he had struck a trade pact with Indonesia, resulting in a lower US tariff on the country's goods than earlier threatened, alongside better market access.  © Kevin Dietsch / GETTY IMAGES NORTH AMERICA / Getty Images via AFP)

"Great deal, for everybody, just made with Indonesia," Trump wrote on his Truth Social platform, saying that he worked with the country's president directly.

He later told reporters that Indonesia was "giving us access" and that goods from the Southeast Asian country would face a 19% tariff.

Trump did not elaborate on the improved access that he had touted, although he stressed that Indonesia is "very strong on copper" and other materials.

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"As part of the Agreement, Indonesia has committed to purchasing $15 Billion Dollars in US Energy, $4.5 Billion Dollars in American Agricultural Products, and 50 Boeing Jets, many of them 777's," he added.

The Trump administration has been under pressure to finalize trade pacts after promising a flurry of deals, as countries sought negotiations with Washington to avoid Trump's tariff threats.

But the US president has so far only unveiled deals with Britain and Vietnam, alongside an agreement to temporarily lower tit-for-tat levies with China.

Last week, Trump renewed his threat of a 32% levy on Indonesian goods, saying in a letter to the country's leadership that this level would take effect August 1.

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It remains unclear when the lower tariff level announced Tuesday will take effect for Indonesia.

"We have a couple of those deals that are going to be announced. India basically is working along that same line," Trump told reporters Tuesday, referring to market access.

Indonesia's former vice minister for foreign affairs Dino Patti Djalal told a Foreign Policy event Tuesday that government insiders had indicated they were happy with the new deal.

Cover photo: Kevin Dietsch / GETTY IMAGES NORTH AMERICA / Getty Images via AFP)

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