Last week, President Trump announced that a 32% tariff on imports from Indonesia would kick in on Aug. 1. On Tuesday, he announced that a deal had been reached for a lower tariff rate. "They are going to pay 19% and we are going to pay nothing," Trump said, per the BBC. "We will have full access." He praised Indonesia's leader as a "really great president, very popular, very strong, smart."
- "This morning I finalized an important Deal with the Republic of Indonesia after speaking with their Highly Respected President Prabowo Subianto," Trump said in a post on Truth Social. "This landmark Deal opens up Indonesia's ENTIRE MARKET to the United States for the first time in History."
- Trump said 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."
- "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," the president said, once again misrepresenting tariffs as being paid by other countries, not importers.
Indonesia, which counts China as its biggest trade partner, has the world's 17th-biggest economy. US trade with Indonesia amounted to around $38 billion last year, less than 1% of total international trade involving the US,
Politico reports. The country exports goods including machinery, palm oil, and tires to the US. It also has a large supply of critical minerals.
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