Washington [US], July 16 (ANI): United States President Donald Trump has announced a new trade deal with Indonesia that will reduce tariffs on Indonesian imports to 19 percent, down from the previously proposed 32 percent. In return, Jakarta has agreed to major purchase commitments, including Boeing aircraft, US energy, and agricultural products, Al Jazeera reported.
The agreement follows talks between Trump and Indonesian President Prabowo Subianto.
“As part of the agreement, Indonesia will buy 50 Boeing jets, many of them 777s, along with $15 billion worth of US energy and $4.5 billion in American farm products,” Trump said on his social media platform, Truth Social.
Trump described the deal as a “great deal for everybody.”
Last week, Trump had warned that if Indonesia failed to reach an agreement, the higher 32 percent tariff would take effect on August 1. While the new rate of 19 percent has been announced, it is not yet clear when it will come into force.
The revised agreement also targets transshipped goods — items rerouted through third countries to avoid tariffs. Trump said such practices would now attract stricter penalties.
He added that other countries could soon face revised tariffs, hinting that smaller economies might be hit with rates “a little over 10 percent.” Trump also said a trade deal with Vietnam was “pretty well set,” though no official details have been released.
Under pressure to deliver on his “90 deals in 90 days” promise, Trump has so far confirmed agreements with Vietnam, the UK, and a temporary easing of tariffs with China, Al Jazeera reported.
He told reporters at Joint Base Andrews that discussions were still ongoing with India and the European Union as part of his broader trade strategy.
Reacting to the new deal, Indonesia’s former Deputy Foreign Minister Dino Patti Djalal said the government was satisfied with the outcome. He made the remarks during a panel hosted by Foreign Policy magazine, according to Al Jazeera. (ANI)
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