Trump lands Indonesia trade deal
Sign up now: Get ST's newsletters delivered to your inbox
US President Donald Trump had threatened Indonesia with a 32 per cent tariff rate effective Aug 1 in a letter last week.
PHOTO: DOUG MILLS/NYTIMES
Follow topic:
WASHINGTON – US President Donald Trump on July 15 announced a trade deal with Indonesia, the latest pact in a bid to cement better terms with trading partners and reduce a massive trade deficit.
“Great deal, for everybody, just made with Indonesia. I dealt directly with their highly respected President. Details to follow!!!” Mr Trump said in a post on Truth Social.
Indonesia’s total trade with the US – totalling just under US$40 billion (S$51.4 billion) in 2024 – does not rank in the top 15, but it has been growing. US exports to Indonesia rose 3.7 per cent in 2024, while imports from there were up 4.8 per cent, leaving the US with a goods trade deficit of nearly US$18 billion.
The top US import categories from Indonesia, according to US Census Bureau data retrieved on the International Trade Centre’s TradeMap tool, in 2024 were palm oil, electronics equipment including data routers and switches, footwear, car tyres, natural rubber and frozen shrimp.
Mr Susiwijono Moegiarso, a senior official with Indonesia’s Coordinating Ministry for Economic Affairs, told Reuters in a text message: “We are preparing a joint statement between US and Indonesia that will explain the size of reciprocal tariff for Indonesia including the tariff deal, non-tariff and commercial arrangements. We will inform (the public) soon.”
Mr Trump had threatened the South-east Asian country with a 32 per cent tariff rate effective on Aug 1 in a letter sent to its President last week.
He sent similar letters to roughly two dozen trading partners in July, including Canada, Japan and Brazil, setting blanket tariff rates ranging from 20 per cent up to 50 per cent, as well as a 50 per cent tariff on copper.
The Aug 1 deadline gives the targeted countries time to negotiate agreements that could lower the threatened tariffs. Some investors and economists have also noted Mr Trump’s pattern of backing off from his tariff threats.
Since launching his tariff policy, Mr Trump has clinched only a few deals despite his team touting an effort to bring home “90 deals in 90 days”.
So far, framework agreements have been reached with Britain and Vietnam, and an interim deal has been struck with China to forestall the steepest of Mr Trump’s tariffs while negotiations continue between Washington and Beijing. REUTERS
