The United States has secured a significant trade agreement with Indonesia, avoiding the imposition of steeper tariffs after intense last-minute negotiations.
President Donald Trump confirmed the deal on Tuesday, saying it would boost US exports while maintaining leverage over transshipment violations.
Under the terms of the deal, a 19% tariff will now apply to Indonesian goods entering the US a rate lower than the 32% tariff Trump had threatened to impose by August 1. The compromise was reached following direct talks between Trump and Indonesian President Prabowo Subianto.
“As part of the agreement, Indonesia has committed to purchasing $15 billion in US energy, $4.5 billion in agricultural products, and 50 Boeing aircraft, many of them 777s,” Trump announced on his Truth Social platform.
The deal also includes new provisions targeting transshipped goods, ensuring that any attempts to reroute Indonesian exports through third countries to avoid tariffs will be met with steeper levies.
Despite the headline announcement, Boeing stock remained flat, and key questions remain unanswered including when the new tariff rates will take effect and over what period the pledged purchases will occur.
The announcement is part of Trump’s broader tariff campaign, launched in April, which saw an immediate 10% levy on nearly all trading partners and threats of future hikes. Since then, Trump has postponed the rollout of more severe tariffs most recently moving the August 1 deadline from an earlier July 9 target.
On Tuesday, Trump also said he would begin notifying smaller countries of their updated tariff rates, suggesting a “little over 10%” levy for many. He added that an earlier trade pact with Vietnam was “pretty well set,” though details remain scarce.
Critics have accused the administration of falling short on its promise to deliver 90 trade deals in 90 days, a pledge made in early April. So far, formal agreements have only been announced with the UK, Vietnam, and now Indonesia, alongside a tariff de-escalation agreement with China.
Former Indonesian Vice Minister for Foreign Affairs Dino Patti Djalal, speaking at a Foreign Policy event, said officials in Jakarta were largely satisfied with the new arrangement, viewing it as a reasonable compromise under US tariff pressure.
While the US maintains leverage through enforcement mechanisms on illegal transshipments, the pact allows both sides to avoid an all-out trade conflict. Analysts say the deal could help Indonesia retain market access while Trump can point to a new “America First” win in trade.
With new negotiations also underway with India, the EU, Japan, South Korea, and others, Trump hinted that more announcements could be forthcoming though timelines remain vague.
“We have a Vietnam deal, and I would say that that deal is being pretty well set,” Trump told reporters at Joint Base Andrews, suggesting a string of new announcements may follow before the next tariff deadlines.
As the August 1 deadline approaches, all eyes will be on whether additional countries accept Trump’s terms or risk facing the escalating tariff regime.
Erizia Rubyjeana
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