United States and Indonesia have agreed on a new trade deal that will reduce tariffs and allow more American goods into the Southeast Asian country.
The White House said on Tuesday that Indonesia will also ease its export restrictions on critical minerals like nickel, copper and cobalt — which are key for electric vehicles and electronics.
Under the deal, US will lower a planned tariff on Indonesian products from 32 percent to 19 percent. However, items suspected of being transshipped to avoid duties will face a higher 40 percent rate.
US president Donald Trump celebrated the agreement on his social media platform, Truth Social on Tuesday, calling it a “huge win” for American businesses. He said Indonesia will cut 99 percent of its tariff barriers, making it easier for US companies to sell industrial, tech and agricultural goods there.
In return, Indonesia is expected to buy American products, including Boeing aircraft, farm produce and energy. The two countries are still working on finalising the agreement in the coming weeks.
A US official said the deal could be worth at least $50 billion for the US in terms of new trade and purchases. The official also said Indonesia will no longer try to tax cross-border data flows — something the US had opposed — and will accept US vehicle safety standards.
The agreement comes ahead of a 1 August deadline, when the US is set to raise tariffs on several countries. Similar trade deals have also been announced with Britain, Vietnam and the Philippines.
The White House said on Tuesday that Indonesia will also ease its export restrictions on critical minerals like nickel, copper and cobalt — which are key for electric vehicles and electronics.
Under the deal, US will lower a planned tariff on Indonesian products from 32 percent to 19 percent. However, items suspected of being transshipped to avoid duties will face a higher 40 percent rate.
US president Donald Trump celebrated the agreement on his social media platform, Truth Social on Tuesday, calling it a “huge win” for American businesses. He said Indonesia will cut 99 percent of its tariff barriers, making it easier for US companies to sell industrial, tech and agricultural goods there.
In return, Indonesia is expected to buy American products, including Boeing aircraft, farm produce and energy. The two countries are still working on finalising the agreement in the coming weeks.
A US official said the deal could be worth at least $50 billion for the US in terms of new trade and purchases. The official also said Indonesia will no longer try to tax cross-border data flows — something the US had opposed — and will accept US vehicle safety standards.
The agreement comes ahead of a 1 August deadline, when the US is set to raise tariffs on several countries. Similar trade deals have also been announced with Britain, Vietnam and the Philippines.
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