Trump Announces 19% Tariff on Indonesian Goods Under New Trade Deal
President Donald Trump has announced a new trade agreement between the United States and Indonesia that will impose a 19% tariff on Indonesian goods entering the U.S., while American exports to Indonesia will be tariff-free.
Speaking at a press briefing at the White House on Tuesday, Trump said the deal is part of his broader effort to reduce the U.S. trade deficit and protect American manufacturing. He noted that although the 19% tariff is significant, it is a reduction from the previously threatened 32% tariff.
Under the terms of the agreement, Indonesia has committed to purchasing $15 billion worth of U.S. energy products, $4.5 billion in American agricultural goods, and 50 Boeing aircraft. Trump described the deal as a “win-win” for both nations but stressed that the U.S. would remain vigilant against trade circumvention tactics.
“Products that are trans-shipped through Indonesia to avoid tariffs will face severe penalties,” Trump warned.
The deal is part of Trump’s wider push to renegotiate trade terms with multiple countries before an August 1 deadline. Similar agreements have recently been signed with the United Kingdom and Vietnam, while talks are ongoing with China and India.
The announcement comes amid rising global trade tensions, with the European Union preparing retaliatory tariffs on $84 billion worth of U.S. exports, including aircraft, wine, and automobiles.
Trump’s administration, since April 2025, has implemented some of the highest tariff rates in modern U.S. history as part of its “America First” trade agenda.
Analysts say the 19% tariff on Indonesian goods is still higher than historical norms, though it is lower than the initial figure floated by the White House. Economic experts predict global tariff averages could settle around 14–15% if similar deals are finalized worldwide.
The U.S. Indonesia trade pact is expected to take effect in the coming months, pending final procedural approvals.
