U.S. President Donald Trump on Tuesday declared that the United States has finalized a trade agreement with Indonesia, which includes significant purchase commitments from the Southeast Asian nation. The agreement follows negotiations to avoid steeper tariffs. In a post on Truth Social, Trump said Indonesian exports to the U.S. will now face a 19% tariff, down from the previously threatened 32%.
After the initial disclosure, Trump told reporters that Indonesia would impose no tariffs on U.S. exports. He also stated that the country had pledged to purchase “$15 billion in American energy, $4.5 billion in agricultural goods, and 50 Boeing aircraft, many of them 777 models.”
The Indonesian government confirmed the deal on Wednesday, noting that President Prabowo Subianto had personally negotiated the agreement with Trump during a phone call. Officials in Jakarta described the negotiation as an ‘extraordinary struggle.’
Indonesia was among more than twenty countries, including several in Southeast Asia, that received warning letters from President Trump last week. In a letter sent to the Indonesian government, Trump threatened to impose a 32% tariff on the country’s exports to the United States unless a trade agreement was reached.
Trump said on social media that the deal, finalized after his conversation with President Prabowo, includes stricter tariffs on goods rerouted to bypass higher duties.
The pact with Indonesia is the fourth trade deal Trump has revealed in the past three months, despite earlier pledging to secure numerous agreements with U.S. trading partners.
In 2024, total trade between the United States and Indonesia amounted to approximately $38 billion, encompassing both imports and exports. The figure represents less than 1% of the U.S.’s overall trade volume of $5.2 trillion for the year, placing Indonesia among the lower-ranked Asian trading partners of the United States.
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