US EditionCommentary: Will Indonesia regret its trade deal with Trump?
INDONESIA, JUL 22 – The deal removes nearly all Indonesian tariffs on U.S. goods and requires Indonesia to purchase $22.7 billion in American products, benefiting U.S. industries and workers.
- On July 22, 2025, the White House announced a reciprocal trade framework with Indonesia, imposing a 19% tariff on Indonesian goods and eliminating 99% of Indonesia's tariffs on US exports.
- In its drive for US market access, Indonesia, after a 90-day pause on tariffs that followed early negotiations, aimed to balance ties with China while expanding market share.
- According to the GTRI report, Indonesia pledged concessions include USD 15 billion in energy, USD 4.5 billion in farm products, USD 3.2 billion in Boeing aircraft, alongside removing local content requirements and surrendering key domestic regulations.
- Critics argue the agreement opens Indonesia’s markets and weakens key regulations, while warning India not to ‘fall into the same trap,’ Global Trade Research Initiative said.
- With an August 1 deadline looming, talks extend to the EU at a possible 15% tariff rate, with preparations for reciprocal 30% duties if no framework emerges.
12 Articles
12 Articles
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A recent peek into the working method of the administrative office revealed some fascinating details about the trade agreements between the United States and Indonesia. In line with the favorable terms that the US, guided by the decisive leadership of President Trump, has brokered with other Southeast Asian countries, similar terms seem to have been achieved with Indonesia as well. The Trump-led administration has enlightened the public with fur…
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