‘HUGE WIN’: Trump Reveals Details Of Trade Deal With Indonesia

President Donald Trump on Tuesday revealed the details of the trade deal with Indonesia that was announced last week, calling the agreement a “HUGE WIN for our Automakers, Tech Companies, Workers, Farmers, Ranchers, and Manufacturers.”

Trump said the trade deal wipes out “99%” of Indonesia’s trade barrier, opening the market of the fourth most populous nation in the world for American-made products.

“The United States of America will now sell American Made products to Indonesia at a Tariff Rate of ZERO, while Indonesia will pay 19% on all of their products coming into the U.S.A. — The Best Market in the World!” Trump posted on Truth Social.

The president also said that Indonesia agreed to “supply the United States with their precious Critical Minerals, as well as sign BIG Deals, worth Tens of Billions of Dollars, to purchase Boeing Aircraft, American Farm products, and American Energy.”

Indonesia’s trade with the United States has been growing in recent years, totaling around $40 billion last year, according to Reuters. The biggest Indonesian products imported to the United States are palm oil, furniture, rubber, textiles, and electronics, according to Import Globals. Indonesia also sends a significant amount of precious metals to the United States, with precious metal imports totaling around $400 million in 2023.

While Indonesia will pay a 19% tariff on most products, a Trump administration official told reporters that products made in Indonesia containing a certain percentage of materials from nonmarket economies such as Russia, China, and Vietnam would be hit with a 40% tariff, The New York Times reported.

The White House said that under the deal, Indonesia will exempt “U.S. companies and originating goods from local content requirements” and accept American-made vehicles that are “built to U.S. federal motor vehicle safety and emissions standards.” The Southeast Asian country also agreed to “address and prevent barriers to U.S. agricultural products in the Indonesian market.”

On Tuesday, Trump also announced a similar trade deal with the Philippines, saying the island country will pay a 19% tariff to export products to the American market, while the United States will pay no tariff to send products to the Philippines. The deal with the Philippines also included an agreement to “work together Militarily,” according to Trump.