US President Donald Trump has announced a new trade agreement with Indonesia that he claims will open Indonesia’s entire market to the United States for the first time, while committing Indonesia to significant purchases of American goods, according to a post from the president on Truth Social→view source.
Key details:
- Indonesia will pay a 19 percent tariff on all goods exported to the US.
- Trump says US ranchers, farmers and fishermen will have “complete and total access” to Indonesia’s market of over 280 million people.
- Indonesia to buy US$15 billion in US energy, US$4.5 billion in American agricultural products, and 50 Boeing jets (many 777s).
- US exports claimed to be free from tariffs and non-tariff barriers when entering Indonesia.
- If Indonesia transships goods from a higher-tariff country, a higher tariff will be applied.
This follows on from a “deal” with Vietnam announced by the president earlier this month.
This would Vietnamese goods entering the US tariffed at 20 percent about the same as Indonesia.
That deal, however, has since been called into question with reports Trump’s announcement did not fit with what had been negotiated before hand.
See also: Trump’s Vietnam Trade Deal Announcement: Sectors to Watch