In a major announcement Tuesday, former President Donald Trump said the United States has struck a trade agreement with Indonesia that includes a large purchase of American goods and a sharp shift in tariffs.
Speaking from outside the White House, Trump said Indonesia has agreed to buy $15 billion in US energy products, $4.5 billion in American farm goods, and 50 Boeing aircraft, many of them long-haul 777s, CNBC said.
"It's a great deal for both countries," Trump said. "We get access to their markets, and they will pay fair tariffs coming into our country."
As part of the deal, the US will now place a 19% tariff on goods coming from Indonesia.
At the same time, US exports heading into the Southeast Asian country won't be hit with any tariffs. "No tariffs there. They pay tariffs here," Commerce Secretary Howard Lutnick told sources.
The agreement followed a direct call between Trump and Indonesia's President Prabowo Subianto.
Trump posted shortly afterward on his Truth Social account that the deal had been finalized.
However, Indonesian officials were more cautious, saying they are still preparing a joint statement to explain the full details.
"We are working on a statement that will include tariff rules and commercial arrangements," said Susiwijono Moegiarso, a senior official from Indonesia's Economic Affairs Ministry, via text message to Reuters.
USA President Trump announces a trade deal with President @prabowo that "opens up Indonesia's entire market .. Complete and Total Access .. Tariff and Non Tarrif Barrier free" to the Americans. In return the USA will impose a 19% import tariff on Indonesia, more if transshipped! pic.twitter.com/72DUhbVOOk
— Indonesia Australia (@IndonesiaAust) July 16, 2025
Indonesia Deal Follows Unconfirmed Pacts with Vietnam, UK, China
This agreement marks Trump's fourth trade deal announcement in just three months, following similar statements involving Vietnam, the United Kingdom, and China.
Still, many of these deals lack full details or formal confirmations from the other nations involved.
According to Commerce Department data from last year, Indonesia ranks as the 23rd largest trading partner of the United States.
According to CNN, in 2024, the US brought in $28 billion worth of goods from Indonesia, with most of it made up of clothing and footwear.
It exported around $10 billion, including oil, gas, and agricultural products.
The trade deficit with Indonesia reached nearly $18 billion last year. With this new deal, the Trump team says that gap may shrink.
One surprising detail from Tuesday's press event: Trump said Indonesia's copper, a lesser-known export to the US, may soon face no tariffs.
That comes just weeks before a planned 50% copper tariff is expected to begin on August 1.
Last year, Indonesia exported $20 million in copper to the U.S., putting it well behind major suppliers like Chile and Canada.
Still, for now, Trump is calling it a win. "It's a fair and strong deal," he told reporters. "We worked directly with Indonesia's president to make it happen."
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