Trump warns Indonesia of 19% tariff under trade deal
U.S. President Announces Lower Tariff on Indonesian Goods
President Donald Trump stated that Indonesia will face a 19 percent tariff on its products, a reduced level from the earlier threat. The announcement was made via the President’s Twitter account, where he claimed a trade agreement had been reached.
Key Points of the Deal
- Trump described the arrangement as a “great deal” for all parties involved.
- He emphasized direct collaboration with Indonesia’s President.
- The tariff was confirmed at 19 percent, below the previously threatened 32 percent level.
- He highlighted Indonesia’s strength in copper and other raw materials, though specific market access details were not disclosed.
- Indonesia’s former Deputy Minister for Foreign Affairs, Dino Patti Djalal, expressed satisfaction with the new terms.
Context and Background
Trump’s administration has sought to finalize multiple trade agreements after a promise of several deals. While agreements have already been signed with Britain, Vietnam, and a temporary agreement to lower China’s retaliatory tariffs, a formal agreement with Indonesia remains fresh.
Earlier this week, Trump renewed his threat to impose a 32 percent tariff on Indonesian goods, stating that this level would take effect on August 1. The current reduced tariff announcement has not yet been dated for implementation.
Previous Threats and Current Strategy
In April, Trump imposed a 10 percent tariff on almost all trading partners, with plans to increment this level for dozens of economies, including the European Union and Indonesia. Days before the increased duties were to take effect, he pushed the deadline from July 9 to August 1—his second postponement.
Trump has been sending letters to partners outlining the tariffs that would apply in August. More than 20 such letters have been sent, including to the EU, Japan, South Korea, and Malaysia. Canada and Mexico, originally not targeted in the “reciprocal” tariff push in April, also received similar documents.
Implications for U.S. Trade Relations
Trump’s blanket tariffs aim to tackle what his administration views as unfair trade practices that disadvantage American businesses. Analysts have warned that, without trade agreements, Americans might perceive Trump’s strategy to reshape U.S. trading ties with the world as ineffective. William Reinsch, a senior adviser at the Center for Strategic and International Studies, noted that “in the public’s mind, the tariffs are the pain, and the agreements will be the gain. If there are no agreements, people will conclude his strategy was flawed.”
