President Trump on Tuesday offered more specialties around a trade agreement, the United States hit Indonesia, which White House officials said that tariffs on American goods would be practically reduced to zero, even tariffs on Indonesian products.
Trump posted on the truth social that the Indonesia would provide significant minerals to the US as part of the agreement and purchase Boeing aircraft and American agricultural products.
Trump posted on the truth social, “The deal is a major win for our automakers, tech companies, workers, farmers, rankers and manufacturers.”
A senior administration official told reporters that Indonesia would eliminate all tariffs at “more than 99 percent” of its business with the United States. Indonesia also abandoned several non-tariff barriers, the official said, which involves freeing American companies from the requirements that make products with a certain percentage of local content.
In response, the US will determine a 19 percent tariff rate on goods from Indonesia. Trump had Was declared earlier This tariff rate, which is similar to the one implemented in the trade deal announced on Tuesday with the Philippines.
The US exported goods worth about $ 10 billion to Indonesia in 2024 and imported about $ 28 billion from Indonesia, according to which Government data,
The items that are trans-shipdes, which means that they pass through an intermediary location on the way to their last destination, will face 40 percent tariffs, the senior administration officer said. The Trump administration has reduced zero on trans-shipad goods, arguing that it is a way to develop tariffs by passing products through another country that faces low tariff rate.
The senior administration official argued that the deal is eventually positive for both sides. Trump would face higher tariff rates than facing Indonesia when he took over, but earlier this month a letter in a letter 32 percent lower tariffs than Trump.
“But overall, it is a great deal, as it is a balanced deal that will lead to more fair and mutual trade between the United States and Indonesia,” the official said. “Indonesia has been a great partner in all this, and it is a will for their negotiaters that they were able to make a deal quickly and take bold action.”
In April, the President announced a 10 percent tariff on all imports, as well as widely viewed the “mutual” tariff on dozens of other nations. He reduced those mutual rates after backlash from financial markets, but now said High fee Will go to place for some countries starting on August 1.
While the Trump administration officials have repeatedly teased a group of deals before the time limit, America is still there. Hurdle agreement The United Kingdom, Indonesia, Vietnam and the Philippines as well as a framework with China.
