In a recent statement, President Trump declared a significant deal with Indonesia, promising to reduce proposed tariffs on imported goods from the southeast Asian nation to 19%. In exchange, the agreement aims to provide American companies with "full access" to Indonesian markets. Although the specifics of the deal are not yet confirmed by Indonesian officials, the move comes amidst a backdrop of ongoing trade negotiations following Trump’s earlier threats of tariffs that sent ripples through international trade relations.
Trump Announces Tariff Agreement with Indonesia
Trump Announces Tariff Agreement with Indonesia
US President Donald Trump reveals a new tariff arrangement with Indonesia, modifying trade barriers to enhance economic access.
Trump's announcement follows a spring full of tariff proposals, leading to increased dialogue with various nations. After a pause on some of these aggressive tariff measures, Trump reignited his warning to numerous countries, including major trade partners such as Canada and the European Union, about starting higher tariffs effective August 1st. Indonesia recently received a warning about a potential 32% tariff, perplexing local leaders who believed negotiations were nearing completion.
During a press interaction, Trump clarified the terms of the new agreement, asserting that Indonesia has consented to lower import tariffs on American goods. "They are going to pay 19% and we are going to pay nothing... we will have full access into Indonesia," he stated. Furthermore, he outlined that Indonesia is set to purchase $15 billion in US energy, $4.5 billion in agricultural products, and 50 Boeing aircraft.
The outlined figures represent a decrease from earlier projections reported by Reuters, which hinted at an impending formal trade agreement. Aside from Indonesia, the Trump administration has also initiated agreements with the UK, China, and Vietnam, albeit under circumstances where high US tariffs remain in effect and details of crucial issues seem unresolved.
Everett Eissenstat, an economic adviser during Trump's first term, expressed expectations for more upcoming deals but noted a shift in foreign nations’ attitudes as they adjust their trade ambitions. He pointed to comments from Canadian Prime Minister Mark Carney regarding the potential acceptance of previously unthinkable tariffs, indicating a notable change in the tone of international trade discussions.
During a press interaction, Trump clarified the terms of the new agreement, asserting that Indonesia has consented to lower import tariffs on American goods. "They are going to pay 19% and we are going to pay nothing... we will have full access into Indonesia," he stated. Furthermore, he outlined that Indonesia is set to purchase $15 billion in US energy, $4.5 billion in agricultural products, and 50 Boeing aircraft.
The outlined figures represent a decrease from earlier projections reported by Reuters, which hinted at an impending formal trade agreement. Aside from Indonesia, the Trump administration has also initiated agreements with the UK, China, and Vietnam, albeit under circumstances where high US tariffs remain in effect and details of crucial issues seem unresolved.
Everett Eissenstat, an economic adviser during Trump's first term, expressed expectations for more upcoming deals but noted a shift in foreign nations’ attitudes as they adjust their trade ambitions. He pointed to comments from Canadian Prime Minister Mark Carney regarding the potential acceptance of previously unthinkable tariffs, indicating a notable change in the tone of international trade discussions.
