The United States and Indonesia have reached a new trade agreement, just weeks before punitive U.S. tariffs were set to take effect on Indonesian imports, U.S. President Donald Trump announced Tuesday evening, July 15, 2025.

“A great deal for everyone has just been reached with Indonesia. I negotiated directly with their highly respected President. DETAILS TO FOLLOW!!!” Trump wrote on his social media platform, Truth Social, on Tuesday.

Cabinet Secretary Teddy Indra Widjaja confirmed the situation when President Prabowo Subianto received a phone call from United States President Donald Trump. The call resulted in a trade agreement between Indonesia and the United States.

The phone call between the two leaders took place on Tuesday evening.

The announcement came after months of high-stakes negotiations triggered by Trump’s threat to impose a 32 percent tariff on a wide range of Indonesian goods, beginning August 1, 2025. In a letter sent earlier this year, Trump warned that the tariff would be enforced unless a bilateral agreement was reached in time.

Indonesia is now the fourth country to secure a trade pact with the U.S. under Trump’s escalating tariff policy, following China, the United Kingdom, and Vietnam. Trump has also issued similar tariff threats to Canada, Japan, and Brazil including a 50 percent duty on copper imports.

No details about the Indonesia-U.S. agreement have been made public. However, officials from both governments confirmed that negotiations had concluded and that a joint statement would be released soon.

“We are preparing a joint announcement that will outline the scope of reciprocal tariffs, non-tariff arrangements, and commercial terms,” Secretary of Coordinating Ministry for the Economy, Susiwijono Moegiarso, speaking from Washington as quoted by Reuters on Tuesday.

In Jakarta, ministry spokesman Haryo Limanseto said that Indonesia was hopeful the deal would produce “the best possible outcome” for both nations. “Let’s wait together. We hope for a mutually beneficial result,” he said.

Intense negotiations

Talks between Indonesian and U.S. trade officials began in early April, shortly after Trump reintroduced his reciprocal tariff doctrine in his bid to return to the White House.

The first phase of Indonesia’s proposal, delivered in April, included tariff and non-tariff concessions, such as lower import duties on U.S. products and regulatory relaxations particularly around local content (TKDN). The second phase, offered in June, focused on co-investment opportunities in critical minerals, energy, and agriculture.

Indonesia also enlisted its sovereign wealth fund (Danantara), and several state-owned enterprises to develop a US$34 billion package comprising product purchases and investment pledges. Of that total, US$15.5 billion was earmarked for agricultural and energy imports from the U.S.

Trade surplus

The agreement comes as Indonesia seeks to protect its trade surplus with the U.S., which reached US$14.37 billion in 2024, according to the International Trade Centre (ITC). The U.S. remains a top export destination for Indonesian goods such as palm oil, rubber, footwear, automotive tires, frozen shrimp, and electronic components.

Indonesia’s proactive strategy appears aimed at preserving that favorable balance while also avoiding disruption to key export sectors that would have been hit hard by the proposed tariffs.

Whether the deal will forestall further trade tensions remains to be seen. Trump, known for his unpredictable approach to trade, has a history of reversing tariff threats at the last minute. However, his administration’s latest moves signal a renewed push toward bilateral arrangements with favorable terms for American producers.

As of Tuesday, no official statement has been issued by the White House or Indonesia’s Presidential Office. A joint announcement detailing the agreement is expected later this week.