Indonesia Deal Will Mean 19% Tariffs
President Donald Trump said the trade deal he and Indonesia's president reached will provide U.S. exporters "full access," access exporters never had.
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"The other part is, they are going to pay 19%, and we are going to pay nothing. I think it's a good deal for both parties," he said July 15.
"Now Indonesia has some great products, and they also have some valuable earths and other materials," Trump said. "One of the things they're known for is very high-value copper, which we'll be using."
Indonesia has not yet confirmed the parameters of the deal. (Politico reported that Trump's announcement that Vietnamese goods will face a 20% tariff was not what Vietnam agreed to; they expected to receive an 11% rate in exchange for their concessions.)
Indonesia's top exports to the U.S. in 2024, according to the International Trade Centre, were $4 billion in Chapter 85, with $1 billion in heading 8543; $2.5 billion in Chapter 61 apparel and $2.1 billion in Chapter 62 apparel; $2.4 billion in footwear; and $1.3 billion in palm oil.
Former Indonesian Vice Minister for Foreign Affairs Dino Patti Djalal, in a video interview with Foreign Policy July 15, said ahead of Trump's remarks: "A deal has been made. They’re not saying how much is the tariff that Indonesia will get. It’s not going to be zero percent, but insiders from [the] Indonesian government said they’re very happy with the new deal."
Reuters reported that Susiwijono Moegiarso, a senior official with Indonesia’s Coordinating Ministry for Economic Affairs, texted the wire service: “We are preparing a joint statement between US and Indonesia that will explain the size of reciprocal tariff for Indonesia including the tariff deal, non-tariff and commercial arrangements. We will inform (the public) soon."
The Office of the U.S. Trade Representative said that U.S. exports to Indonesia in 2024 were $10.2 billion, and that the U.S. imported $28.1 billion in Indonesian goods in 2024. U.S. exports increased by 3.7% that year, and imports from Indonesia increased by 4.8%.