Tue Jul 15 20:59:29 UTC 2025: ## US and Indonesia Strike Trade Deal, Avoiding Tariff Hike

**Washington, D.C.** – The United States and Indonesia have reached a new trade agreement, averting a threatened increase in US tariffs on Indonesian goods. The deal, announced by US President Donald Trump on Tuesday, includes significant purchase commitments from the Southeast Asian nation.

According to Trump, the agreement imposes a 19% tariff on Indonesian goods entering the US, a considerable reduction from the potential 32% levy threatened last week. In exchange, Indonesia has committed to purchasing $15 billion in US energy, $4.5 billion in American agricultural products, and 50 Boeing jets, including the popular 777 model.

“It’s a great deal, for everybody!” Trump touted in a post on his Truth Social platform.

The agreement was finalized after Trump spoke with Indonesian President Prabowo Subianto. The deal also aims to prevent goods from being transshipped through Indonesia to avoid higher duties, with such goods facing steeper levies.

The Trump administration has been under pressure to finalize trade agreements after promising a flurry of deals in recent months, particularly as countries seek to avoid potential tariff increases. Last week, Trump renewed his threat of a 32% tariff on Indonesian goods, initially scheduled to take effect on August 1st. This deadline has now been averted by the new agreement.

While the exact date for the implementation of the 19% tariff remains unclear, Indonesian officials have reportedly expressed satisfaction with the deal. Specific timelines for the various purchase commitments were also not disclosed.

Boeing stock remained relatively stable following the announcement.

The deal with Indonesia adds to a growing list of trade agreements recently unveiled by the Trump administration, including those with Britain, Vietnam, and a temporary reduction in tit-for-tat tariffs with China. Trump has also indicated that discussions are ongoing with countries like India and the European Union. This comes as Trump has sent letters to more than 20 trading partners, including the EU, Japan, South Korea, Malaysia, Canada and Mexico, outlining updated tariffs for their products

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