Indonesia calls trade deal with U.S. an ‘extraordinary struggle’
The United States and Indonesia have finalized a trade agreement following what Jakarta described as an “extraordinary struggle,” after months of tense negotiations.
The deal, announced by President Donald Trump on Tuesday, reduces U.S. tariffs on Indonesian exports to 19%, down from the 32% initially threatened, News.Az reports, citing CNN.
In return, Indonesia will eliminate tariffs on American goods and commit to major purchases, including $15 billion in U.S. energy, $4.5 billion in agricultural products, and 50 Boeing jets.
Trump celebrated the agreement on his Truth Social account, calling it a “great deal for everybody.” Speaking to reporters before departing for Pittsburgh, Trump added that Indonesia is “known for high-quality copper,” hinting that copper imports could face lower tariffs if the administration moves forward with a planned 50% tax on all copper imports starting August 1.
Indonesia confirmed the deal Wednesday, with President Prabowo Subianto negotiating directly with Trump by phone. “This is an extraordinary struggle by our negotiating team,” said Hasan Nasbi, spokesperson for President Prabowo. In an Instagram post, Prabowo hailed the agreement as “a new era of mutual benefit between our two great nations.”
The U.S. Commerce Department reported that Indonesia exported $28 billion worth of goods to the U.S. last year — primarily apparel and footwear — while importing $10 billion in American products, mainly oilseeds, grain, and energy.
This marks Trump’s fourth trade deal in three months, following earlier announcements with Vietnam, though details on previous agreements remain scarce. Trump has warned that countries failing to reach new trade terms will face tariffs of at least 10%, set to rise on August 1.
Businesses remain wary of the administration’s volatile tariff policy. Analysts caution that sudden rate hikes can disrupt supply chains, and relocating production to the U.S. — as Trump urges — could take years and drive up consumer prices.
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