Donald Trump Announces 'Great' Trade Deal With Indonesia, Cuts Tariff To 19%
A potential agreement would mark the fourth trade framework Trump has brokered with a foreign government, following Vietnam and the UK.
US President Donald Trump on Tuesday indicated fruitful trade talks with Indonesia, stating that he has made a great deal directly with the Indonesian President.
Trump, as part of the trade pact, has imposed a 19% levy on Indonesia. On the other hand, the US will pay “nothing” and have “full access” to Indonesia, he told reporters outside the White House.
Trump had previously imposed a 32% levy on the country, during his tariffing spree last week. This tax was set to be effective Aug. 1.
Trump, before speaking to reporters, posted on Truth Social that a trade deal has been reached with Indonesia. "Great deal, for everybody, just made with Indonesia. I dealt directly with with their highly respected President. DETAILS TO FOLLOW!!! (sic)," he had posted.
Global markets have investors awaiting clarity on the US President's shifting trade policies, which have seen multiple changes in tariff rates and deadlines since April. The Indonesia ETF had hit a session high post Trump's comment, while the S&P 500 held steady with modest gains.
Indonesia's chief negotiator, Minister Airlangga Hartarto, held talks last week in Washington with US officials including Trade Representative Jamieson Greer, Commerce Secretary Howard Lutnick, and Treasury Secretary Scott Bessent, aiming to secure a more favorable trade deal.
The pact with Indonesia would mark the fourth trade framework Trump has brokered with a foreign government, following similar announcements involving Vietnam and the UK. The US and China also reached a temporary tariff truce, which includes restarting trade in critical minerals and technology.
Trump also indicated a willingness to resume negotiations with major economies, including the European Union.
In recent days, the president issued a wave of tariff demand letters, warning several countries of fresh duties set to take effect on August 1 unless improved trade terms are agreed upon. The letters extended a previous July 9 deadline by three weeks, triggering a new round of hurried diplomacy.
