[CTC] Trump announces trade deal with Indonesia

Tue Jul 15 11:57:57 PDT 2025

Trump announces trade deal with Indonesia
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The president told reporters Indonesia had agreed to a 19 percent tariff
rate on its exports to the U.S. The Indonesian government has yet to
confirm the details of the deal.

POLITICO PRO

BY MEGAN MESSERLY, DOUG PALMER | 07/15/2025 02:12 PM EDT

President Donald Trump speaks during the White House Faith Office luncheon
in the State Dining Room on July 14, 2025, in Washington, D.C. | Evan
Vucci/AP

President Donald Trump on Tuesday announced that the U.S. has reached a
trade accord with Indonesia.

The announcement, made on Truth Social, included no details about the
contents of the agreement. Indonesia was one of more than two dozen
countries, including several in Southeast Asia, that received warning
letters from Trump last week. The letter sent to the Indonesian government
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to impose a 32 percent tariff on the country’s exports to the U.S. unless
they struck a new trade deal.

“Great deal, for everybody, just made with Indonesia. I dealt directly with
with their highly respected President. DETAILS TO FOLLOW!!!” he wrote on
Truth Social
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.

Trump, speaking to reporters Tuesday afternoon, said Indonesia had agreed
to a 19 percent tariff rate on its exports to the U.S., but would impose no
tariffs on U.S. imports. He added that he had spoken to Indonesian
President Prabowo Subianto — whom he called a “really great president, very
popular, very strong, smart” — about the agreement.

“We have all access to everything. We will pay no tariffs. They are giving
us access into Indonesia, which we've never had. That's probably the
biggest part of the deal,” Trump said.

The White House declined to comment further about the deal. The Indonesian
embassy in Washington did not respond to a request for comment and has yet
to confirm the details of the deal.

The 19 percent tariff rate is 1 percentage point less than what Trump has
said would be the rate for Vietnam under another agreement he announced
recently. However, Indonesia’s exports to the United States totaled just
$28 billion last year, about one-fifth of Vietnam’s.

U.S. trade with Indonesia totaled about $38 billion last year, including
both imports and exports. That’s significantly less than 1 percent of total
U.S. trade last year of $5.2 trillion and puts Indonesia near the bottom of
the pack among U.S. trading partners in Asia.

Top U.S. imports from Indonesia include machinery, electronics, clothing,
footwear, palm oil, furniture, tires and other rubber objects.

Indonesia also has large deposits of critical mineral resources needed for
a variety of technology and clean energy goods, including nickel, copper,
bauxite and tin, according to the Commerce Department. However, Indonesia
has had a ban on nickel exports for a number of years, irritating the U.S.
and other trading partners.

Trump also recently announced plans to impose a 50 percent tariff on copper
and copper derivatives, effective Aug. 1, a move that threatens Indonesian
exports of that commodity to the United States.

But the president suggested Tuesday that the U.S. may increase imports of
copper and “very valuable earths and various other materials,” without
offering specifics.

The announcement comes nearly two weeks after Trump said the U.S.struck a
trade deal
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 with Vietnam, though the countries still have yet to release any text of
the agreement and Vietnam has not accepted a key part of it
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.

The Trump administration is under increasing pressure to announce trade
deals with countries as it stares down a new Aug. 1 deadline to impose
tariffs on dozens of countries, which could risk spiking costs for
consumers.

The Bureau of Labor Statistics announced Tuesday that the Consumer Price
Index rose 2.7 percent in June from a year ago, which many economists have
warned would happen as a result of Trump’s trade policies
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The president has been highly sensitive to inflation, for weeks calling on
Federal Reserve Chair Jerome Powell to cut interest rates or resign.

“Consumer Prices LOW. Bring down the Fed Rate, NOW!!!” Trump wrote on Truth
Social
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 just moments after his post on Indonesia. He followed up with another
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 calling on the Fed to cut interest rates by 3 points.

So far, Trump has only notched a true trade agreement with the United
Kingdom, though he is touting an accord to deescalate trade tensions
between the U.S. and China as a trade “deal,” as well.

The announcement also follows news earlier this week that the European
Union and Indonesia had reached a political agreement to finalize a free
trade agreement by September
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That would put U.S. exporters at a disadvantage in selling to the nation of
281 million people, which is ranked as the world’s 17th largest economy.

It also comes as China continues to use trade tensions with the U.S. to
strengthen its own position in Southeast Asia.

In a thinly veiled response to Trump’s letters threatening to raise tariffs
on countries across the region
<https://protect.checkpoint.com/v2/r01/___https:/url4763.email.politicopro.com/ls/click?upn=u001.Q6ij-2B6lCBUOmLoIECmNeyasVlxItr2fdP9GFDpe8m4oi88lXFGXei52n966MomgQp-2B85dsHa4ro78K6BAgUYY-2FjUHmElcrkmrZ4h4I3Xal1WODoXVMLpko9bD2bOuAxXeXINFHcde5vNnzFvG9UMCMDM6ZH6S4MB3xFJtCK8BJY-3D0VGt_MPntofsD8N2zaEQmbO9-2B1owVQ0LUqMIXTyNeedN2TZk4Q219m13kf5AKQiy4DRlbZi1PHGUf-2FBu7aSJkKEHnZTw1WRdm-2FQ0NVlgu-2BEVBwV9a0-2FUxdkCYDJxNUhPWIBWwQ21fXBO3r4r1rxTQSy4IbdKe1scn2mpnbJdXls-2FAA4y9OV4b6-2F4UAn1dcgvr1DoHoYB-2BCwdlSYZBWUjklAd-2FGmSb0xM5E0N63HiJkKUXZCipaOe-2BaEIrjNP5wnej-2B55lg3wnsI5Y33LhPHqp9IO1fx4dN9Wv54yB4piYwEe1f2I6wj-2BAEGf3WBbLvmyMUcxL-2BzUAM6PCzb0g4oxVzXmhhfWNpxW5HImKnNYYm2sx22U-2FiGoF3QdW2rKP8I1UXCpUh-2BEnvFCfKl37mcy9RRtBr7ss4To-2B0tIi4PMS3X7IoOuDkji780dtuWmMbzFgUVrj7p7WxL-2FboNrJAYiR5eora8vBWeOzparAe2hLIePeGGzSaGBdiF1V-2FPNY1fZNraMKGTdSfAvEYU803gp51DIWyg-3D-3D___.YzJ1OmFlbHBlY29ub21pY2xpYmVydGllczpjOm86MTZhYTA5MzljOTFmZjA3MjU2N2M0NmY4YTAyODM3YzM6NzpiMDJmOmE4YzUyMzBlNTU0YThkMjRkZjcxNTc5YzI3ZjI0NDM4ZTEyZjAxMGYwOWFmNzU1NDRkMWRmMzAzNzNhYWIwODA6aDpUOkY>,
Chinese officials said that their country “looks forward to working with
regional countries to uphold true multilateralism and open regionalism and
defend free trade and the multilateral trading system.”

China was by far Indonesia’s largest trading partner in 2021, according to
the World Trade Organization’s most recent trade profile report,
<https://protect.checkpoint.com/v2/r01/___https:/url4763.email.politicopro.com/ls/click?upn=u001.Q6ij-2B6lCBUOmLoIECmNeyaROMwLe6X9kEZHVb2aHn5gNoMON5Ht-2F6wQmRP1UFAJZg-2F0ZGR1eF7gy5w-2Fz8ds0QpgAs6u14AZ6X-2FdjO1LhRpWp4zB56fVGpJ0FtINXW0waq-2FD7d2zcBFpSauVlLQUEMA-3D-3DqseU_MPntofsD8N2zaEQmbO9-2B1owVQ0LUqMIXTyNeedN2TZk4Q219m13kf5AKQiy4DRlbZi1PHGUf-2FBu7aSJkKEHnZTw1WRdm-2FQ0NVlgu-2BEVBwV9a0-2FUxdkCYDJxNUhPWIBWwQ21fXBO3r4r1rxTQSy4IbdKe1scn2mpnbJdXls-2FAA4y9OV4b6-2F4UAn1dcgvr1DoHoYB-2BCwdlSYZBWUjklAd-2FGmSb0xM5E0N63HiJkKUXZCipaOe-2BaEIrjNP5wnej-2B55lg3wnsI5Y33LhPHqp9IO1fx4dN9Wv54yB4piYwEe1f2I6wj-2BAEGf3WBbLvmyMUcxL-2BzUAM6PCzb0g4oxVzXmhhfWNpxW5HImKnNYYm2sx22U-2FiGoF3QdW2rKP8I1UXCpUh-2BEnvFCfKl37mcy9RRtBr8wXqPBr1Cq9nlnfKj-2F7WR7Lj3-2BDk7evm5VuHtY1kaEYwTAdwrfTK9NMYsG1z1c0IaH2xJQHq28CU527VwQsh9P5MKbFwV2Sv4XaxwUhfbDM95lUzb-2BUL6zhbIS38IQN5w-3D-3D___.YzJ1OmFlbHBlY29ub21pY2xpYmVydGllczpjOm86MTZhYTA5MzljOTFmZjA3MjU2N2M0NmY4YTAyODM3YzM6NzphZjYzOmI4OTVhN2ZhMTk3Y2MxMmNhOTBjNWM2Y2MyMzUxN2RkNzQ3M2M0ZDdlYWIzODM5Nzk2Y2E1MWM1MjBhZjBiYzA6aDpUOkY>
 with the European Union, the United States and Japan closely competing for
the second spot.
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