Indonesia Promises to Buy More Than $20B in US Exports
The president of Indonesia confirmed to reporters in Jakarta that he agreed to 19% tariffs, in exchange for buying more wheat, soybeans, fuel and Boeing aircraft.
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President Prabowo Subianto said, "Thankfully, after a tough negotiation, we reached an agreement. The tariff is now reduced from 32% to 19%. We understand their interests, and they understand ours."
He expressed hope that the deal could improve over time. "In trade relations, negotiation is a continuous process. We’ll keep working on it," he said.
Trump posted more details on social media on July 15. "This landmark Deal opens up Indonesia’s ENTIRE MARKET to the United States for the first time in History. As part of the Agreement, Indonesia has committed to purchasing $15 Billion Dollars in U.S. Energy, $4.5 Billion Dollars in American Agricultural Products, and 50 Boeing Jets, many of them 777’s," he wrote. "In addition, Indonesia will pay the United States a 19% Tariff on all Goods they export to us, while U.S. Exports to Indonesia are to be Tariff and Non Tariff Barrier FREE. If there is any Transshipment from a higher Tariff Country, then that Tariff will be added on to the Tariff that Indonesia is paying. Thank you to the People of Indonesia for your friendship and commitment to balancing our Trade Deficit."