Driving the News
In a post on Truth Social on Tuesday morning, President Trump said he had finalized a “landmark deal” with Indonesia following direct talks with President Prabowo Subianto. The agreement marks what Trump described as the “first time in history” that the Indonesian market—home to over 280 million people—will be fully opened to U.S. exports.
Key Details
- Indonesia has agreed to purchase $15 billion worth of U.S. energy products.
- An additional $4.5 billion in American agricultural products will be exported to Indonesia.
- The country will buy 50 Boeing jets, including many 777 models.
- U.S. exports to Indonesia will face zero tariffs and no non-tariff barriers.
- Indonesian exports to the U.S. will be subject to a 19% tariff.
- If Indonesia transships goods from high-tariff countries, those tariffs will be added on top.
What They’re Saying
Why It Matters
The deal signals a shift in U.S.-Indonesia trade relations, potentially reducing the long-standing trade imbalance. For American exporters, especially in the energy, agriculture, and aviation sectors, the agreement could open one of Southeast Asia’s fastest-growing markets. The new tariff arrangement also reflects Trump’s broader strategy of leveraging tariffs to secure favorable trade terms.
What’s Next
Implementation of the agreement will require inter-agency coordination in both countries. U.S. trade officials are expected to outline enforcement measures for the transshipment clause. Meanwhile, Boeing and American agriculture exporters are preparing for major shipments later this year.
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