Trump Announces Indonesia Trade Deal: 19% Tariff, Boeing Purchase and $20B in US Exports

By Staff, Agencies

President Donald Trump has announced a new trade agreement with Indonesia under which Indonesian exports to the US will face a 19% tariff—lower than the 32% rate Trump had originally threatened.

In exchange, Indonesia has agreed to purchase 50 Boeing aircraft, $15 billion in US energy products, and $4.5 billion in American agricultural goods.

The deal, finalized following a conversation between Trump and Indonesian President Prabowo Subianto, is part of Trump’s wider push to reduce the US trade deficit and secure what he describes as "fairer" trade terms. “They are going to pay 19 percent, and we are going to pay nothing,” Trump said outside the Oval Office. “We will have full access into Indonesia, and we have a couple of those deals that are going to be announced.”

Trump later reiterated on Truth Social that the agreement includes a commitment from Indonesia to purchase $15 billion in US energy, $4.5 billion in farm products, and 50 Boeing jets—many of them 777s. However, he did not provide a timeline for the purchases.

While Indonesia is not among the US’s largest trade partners—bilateral trade totaled just under $40 billion in 2024—the relationship has been expanding. US exports to Indonesia grew by 3.7% last year, and imports increased by 4.8%, resulting in a goods trade deficit of nearly $18 billion.

The agreement comes amid Trump’s broader tariff campaign. In April, the president imposed a 10% tariff on nearly all US trading partners and warned of higher duties for dozens of economies, including Indonesia and the European Union. The implementation of steeper tariffs was recently delayed from July 9 to August 1, with Trump now sending letters to more than 20 countries outlining the specific rates they will face.

As part of the new agreement with Indonesia, Trump emphasized that transshipped goods—those rerouted to evade tariffs—will face even steeper levies.

Similar deals are reportedly in the works with other nations, including India and the EU. The US has already finalized separate trade agreements with Britain and Vietnam and reached a temporary easing of retaliatory tariffs with China. Earlier this month, Trump revealed a preliminary deal with Vietnam, reducing expected tariffs on Vietnamese imports to 20% from a previously threatened 46%—a surprise move that reportedly caught Vietnamese officials off guard.

Despite the announcement, Boeing shares fell slightly, closing down 0.2% following news of the deal.