Ana Swanson – The Trump administration provided more details Tuesday of the trade deal it reached with Indonesia, saying that the Indonesian government had agreed to roll back multiple trade barriers that U.S. companies have complained about and make purchases of American oil, gas, airplanes and farm products.
In a call with reporters, a senior official who declined to be named said that Indonesia had agreed to drop its tariff on nearly all American imports to zero, while the United States would maintain a 19 percent tariff on Indonesian products.
That tariff would increase significantly for goods that are made in Indonesia but contain a certain percentage of parts or raw materials from countries designated as nonmarket economies, a list that includes China, Russia and Vietnam. Those products would face a 40 percent rate when entering the United States, the official said. The administration did not specify what percentage of products would qualify for the higher tariff.
The comments provided more insight into the series of hasty deals that the Trump administration is negotiating with trading partners around the world ahead of a self-imposed Aug. 1 deadline. As Mr. Trump seeks to reorder America's trading relationships, the White House has reached framework agreements with Britain, Vietnam and Indonesia, as well as a trade truce that rolled back some tariffs with China.
But Mr. Trump has typically announced these deals on his social media account, without providing details about what was agreed to. The White House has released more information hours or days later, or, in the case of the Vietnam deal, which Mr. Trump announced July 2, not at all.
For instance, Mr. Trump announced that he had reached a trade deal with the Philippines, after a meeting at the White House on Tuesday with President Ferdinand Marcos Jr. Mr. Trump wrote on Truth Social that he had a "beautiful visit" with Mr. Marcos and cemented a trade deal that would put a 19 percent tariff on exports from the Philippines. American goods going into the country would face zero tariffs, he said, and the countries would expand their military cooperation. No other details have been announced confirming the terms.
Information provided by the Trump administration suggests that the Indonesia deal will lower multiple longstanding trade barriers that complicate business for U.S. companies, while also leaving lopsided tariffs in place in a bid to reduce the U.S. trade deficit with the country.
The Trump official said that Indonesia had agreed to drop onerous inspections of U.S. farm goods, accept U.S. federal motor safety standards and authorizations by the Food and Drug Administration, and remove its export restrictions on critical minerals. It had also agreed to remove local content requirements that mandate that U.S. businesses use Indonesian parts and workers, and halt an effort at the World Trade Organization to allow for tariffs to be placed on electronic products when they travel across borders.
The official estimated that the deal would be worth $50 billion to the United States in terms of expanded market access for American businesses as well as Indonesian purchases of American products.
A release put out by the White House on Tuesday said that Indonesia had agreed to buy $3.2 billion of U.S. aircraft; $4.5 billion of soybeans, wheat, cotton and other farm products; and $15 billion of energy products.
The release said that Indonesia had agreed to protections for the environment and for workers, including amending its labor laws to allow for collective bargaining and prohibiting the import of goods made with forced labor. It also said that the United States might reduce its tariffs for Indonesian products "that are not naturally available or domestically produced in the United States."
"It is agreed that Indonesia will be Open Market to American Industrial and Tech Products, and Agricultural Goods, by eliminating 99% of their Tariff Barriers," the president wrote on social media on Tuesday. "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!"
Governments around the world have been negotiating with the administration to try to lower the tariffs charged on their exports in advance of the Aug. 1 deadline, when Mr. Trump has promised that higher levies will kick in.
The tariffs on Indonesia appear to be broadly in line with those Mr. Trump has agreed on with other Southeast Asian nations that have struck deals. In addition to the 19 percent tariff on Philippine exports, the deal with Vietnam left 20 percent tariffs in place.
[Ana Swanson covers trade and international economics for The Times and is based in Washington. She has been a journalist for more than a decade. A version of this article appears in print on July 23, 2025, Section A, Page 8 of the New York edition with the headline: U.S. Outlines Concessions By Indonesia Over Tariffs.]
Source: https://www.nytimes.com/2025/07/22/us/politics/trump-indonesia-trade-deal.htm