US exports will face no tariffs, boosting access to Indonesia’s 280 million people. The move aims to balance trade deficits, with potential tariff adjustments for transshipped goods.
Photo : AP
President Donald Trump has unveiled a bold trade agreement with Indonesia, marking a significant shift in U.S. economic strategy as of July 15, 2025. In a Truth Social post, Trump hailed the deal, finalised after talks with Indonesian President Prabowo Subianto, as a historic breakthrough that opens Indonesia’s entire market to American goods.
This move follows Trump’s threat of a 32% tariff, signalling a negotiated compromise that promises to reshape trade dynamics. The announcement has sparked immediate buzz, with details revealing a game-changing economic partnership.
The agreement delivers a major boost for U.S. industries, with Indonesia committing to purchase $15 billion in U.S. energy, $4.5 billion in American agricultural products, and 50 Boeing jets, including many 777s. This opens up Indonesia’s 280 million-strong market to U.S. ranchers, farmers, and fishermen for the first time, a move Trump touted as a win for American producers.
The tariff structure is a key feature, with Indonesia paying a 19% tariff on goods exported to the U.S., while U.S. exports enjoy tariff and non-tariff-barrier-free access. Any transhipment from higher-tariff countries will add to Indonesia’s tariff, ensuring a balanced trade approach.
Key Takeaways from the Deal
- Historic Market Access: Indonesia’s entire 280 million-person market is open to U.S. goods for the first time.
Massive Purchase Commitments: Indonesia will buy $15 billion in U.S. energy, $4.5 billion in agricultural products, and 50 Boeing jets, boosting American industries.