Former U.S. President Donald Trump has reached a new tariff agreement with Indonesia, marking a significant step toward reducing trade tensions between the two countries.
Under the terms of the deal, tariffs on Indonesian products entering the U.S. will be reduced from 32% to 19%, a move jointly announced by both leaders. Trump hailed the agreement as a step that provides “full access” for American companies to the Indonesian market.
Indonesian President Prabowo Subianto described the deal as heralding a “new era of mutual benefit” in U.S.-Indonesia relations. He acknowledged that Trump was a “tough negotiator,” referencing the intensity of the negotiation process.
This agreement follows the U.S. administration’s broader review of global tariff structures, part of a wider strategy to strengthen America’s global trade position.
Earlier this month, Trump had warned dozens of countries of potential new tariffs starting August 1, targeting major U.S. trading partners such as the European Union, Canada, Japan, Mexico, and South Korea.
Indonesia was among the countries receiving such a warning, raising concerns about the trajectory of trade talks. However, a direct phone call between Trump and Subianto reportedly helped clear the path toward this new deal.
As part of the agreement, Indonesia also agreed to lower tariffs on U.S. agricultural goods and manufactured products, addressing long-standing concerns raised by Washington.
The deal is expected to boost bilateral trade, support American exporters, and deepen strategic economic cooperation between the two nations.
