Indonesia will remove tariffs on the vast majority of U.S. goods and eliminate trade barriers as part of a pair of apparent deals announced Tuesday by President Donald Trump.
“It is my Great Honor to announce our Trade Agreement with the Republic of Indonesia, as represented by their Highly Respected President, Prabowo Subianto,” Trump wrote in a post on Truth Social announcing the deal. “This Deal is a HUGE WIN for our Automakers, Tech Companies, Workers, Farmers, Ranchers, and Manufacturers. Thank you for your attention to this matter. MAKE AMERICA GREAT AGAIN!”
The announcement marks new details on the nontariff barrier portion of the deal, which both nations last week confirmed existed, but with limited details at the time. The deal includes a tariff rate of zero from Indonesia on over 99% of U.S. goods and the elimination of all nontariff trade barriers, while the U.S. maintains a rate of 19% on Indonesian goods, a senior White House official told reporters on a call. (Transshipped goods, which are those made elsewhere and then shipped to Indonesia for export, will face a higher rate of 40%.)
The deal “is worth at least 50 billion to the United States in terms of new market access, as well as purchases that Indonesian companies intend to make of U.S. goods, such as LNG oil and gas and farm commodities,” the official said.
Earlier on Tuesday, Trump had also announced on Truth Social a deal with the Philippines, where the country will be “going OPEN MARKET with the United States, and ZERO Tariffs. The Philippines will pay a 19% Tariff. In addition, we will work together Militarily.”
The moves mark some additional progress on Trump’s efforts to make trade deals, which so far have also been announced with the United Kingdom and Vietnam. But the administration has fallen far short of its self-imposed “90 deals in 90 days” goal, which expired in early July.
The deal with Indonesia “is significant because it shows exactly how the president is resetting the terms of trade to ensure that we can reduce our deficit, both by regulating imports and also expanding exports,” the White House official said. “This is a great deal because it’s a balanced deal that will lead to more fair and reciprocal trade between the United States and Indonesia. Indonesia has been a great partner in all of this, and it’s a testament to their negotiators that they were able to get to a deal quickly and take bold action.”
Those nontariff barriers, according to the official, included Indonesia dropping its efforts to tax the flow of data and support and renewing an e-commerce customs duty moratorium at the World Trade Organization.
“By making these agreements and these commitments, this deal breaks historic ground by giving our exporters needed certainty and signaling to other countries of the importance of a tariff-free internet,” they said.
The official told reporters Indonesia would also remove pre-shipment inspection and verification requirements on U.S. imports, measures that are relevant primarily to the agricultural sector. The deal will also change standards, like accepting U.S. federal motor vehicle safety standards for vehicles exported by the U.S. In addition, Indonesia is set to remove export restrictions on critical minerals, exempt U.S. companies from local content requirements and accept Food and Drug Administration certificates and prior marketing authorization for medical devices and pharmaceuticals.