President Donald Trump announced on Tuesday that a new trade agreement has been finalized between the United States and the Republic of Indonesia, following direct talks with Indonesian President Prabowo Subianto.
According to Trump, the agreement will open Indonesia’s market to US exports “for the first time in history,” granting American ranchers, farmers, and fishermen “complete and total access” to the Southeast Asian nation’s population of over 280 million.
The deal includes a commitment from Indonesia to purchase $15 billion in US energy, $4.5 billion in American agricultural products, and 50 Boeing aircraft, many of which will be 777 models.
Under the terms outlined by Trump, US goods exported to Indonesia will face neither tariffs nor non-tariff barriers. Meanwhile, goods exported from Indonesia to the US will be subject to a 19 percent tariff. Trump added that if any transshipment of goods occurs from a third country with higher tariffs, those rates will be applied to the Indonesian exports as well.
"Indonesia will pay the United States a 19% Tariff on all Goods they export to us, while US Exports to Indonesia are to be Tariff and Non Tariff Barrier FREE. If there is any Transshipment from a higher Tariff Country, then that Tariff will be added on to the Tariff that Indonesia is paying," he wrote.
Trump thanked the Indonesian people for their "friendship and commitment to balancing our trade deficit," and said the agreement was part of an ongoing effort to “keep delivering for the American people.”
According to Trump, the agreement will open Indonesia’s market to US exports “for the first time in history,” granting American ranchers, farmers, and fishermen “complete and total access” to the Southeast Asian nation’s population of over 280 million.
The deal includes a commitment from Indonesia to purchase $15 billion in US energy, $4.5 billion in American agricultural products, and 50 Boeing aircraft, many of which will be 777 models.
Under the terms outlined by Trump, US goods exported to Indonesia will face neither tariffs nor non-tariff barriers. Meanwhile, goods exported from Indonesia to the US will be subject to a 19 percent tariff. Trump added that if any transshipment of goods occurs from a third country with higher tariffs, those rates will be applied to the Indonesian exports as well.
"Indonesia will pay the United States a 19% Tariff on all Goods they export to us, while US Exports to Indonesia are to be Tariff and Non Tariff Barrier FREE. If there is any Transshipment from a higher Tariff Country, then that Tariff will be added on to the Tariff that Indonesia is paying," he wrote.
Trump thanked the Indonesian people for their "friendship and commitment to balancing our trade deficit," and said the agreement was part of an ongoing effort to “keep delivering for the American people.”
