U.S. President Donald Trump on Tuesday, July 15, Washington time, announced a new trade deal with Indonesia, confirming that tariffs on Indonesian goods entering the United States would be set at 19 percent down from the previously threatened 32 percent, while U.S. exports to Indonesia will face no tariffs or trade barriers.

The agreement, disclosed via Trump’s Truth Social platform and later confirmed to reporters, is part of his administration’s broader strategy to rewrite bilateral trade rules in America’s favor.

“Indonesia will pay the United States a 19 percent tariff on all goods they export to us, while U.S. exports to Indonesia are to be tariff and non-tariff barrier FREE,” Trump wrote.

He claimed the deal would give American producers full access to Indonesia’s market.

Trump said Indonesia had agreed to purchase $15 billion worth of U.S. energy products, $4.5 billion in agricultural goods, and 50 Boeing aircraft, mostly wide-body 777 jets. However, the timeline for these transactions remains unclear.

Just a week ago, Trump threatened to impose a 32 percent tariff on Indonesian imports, part of a wave of tariff proposals aimed at countries with persistent trade surpluses with the U.S., including Vietnam, Japan, and Brazil.

Tuesday’s announcement confirms Indonesia is the latest nation to negotiate a bilateral trade arrangement that aligns with the Trump administration’s push to curb the U.S. trade deficit and support domestic industries.

Indonesia’s agreed tariff rate of 19 percent is notably lower than the 20 percent rate imposed on Vietnamese goods, signaling Jakarta’s success in securing marginal concessions after rapid negotiations.

Trump noted that Indonesia was “giving America access” and referred to the archipelago nation as a key global supplier of copper and other critical minerals, though he stopped short of elaborating on the nature of this market access.

U.S. sees “asymmetric” trade gains

In a separate interview with CNBC, U.S. Trade Secretary Howard Lutnick said the deal with Indonesia mirrors recent frameworks reached with Vietnam. “There are no tariffs on our exports to them. They pay tariffs to us. It’s an asymmetric reset of trade toward American industry,” he said.

Lutnick framed the agreements as essential to rebuilding U.S. production capacity across several sectors that, he argued, have been undermined by years of unfavorable trade balances.

“This will reinvigorate our farmers, ranchers, fishers, and manufacturers,” Lutnick cited.

Responding to Trump’s announcement, the Indonesian Coordinating Ministry for the Economy confirmed that a joint statement with the U.S. is currently being prepared.

“We are finalizing a joint announcement that will outline tariff arrangements, non-tariff measures, and broader commercial terms,” ministry secretary Susiwijono Moegiarso said in a text message as cited by Reuters on Wednesday, July 16, 2025.

The final details of the agreement particularly the implementation date for the new tariff and the precise mechanisms of U.S. market access remain undisclosed as of Wednesday.

“We will inform the public as soon as it is ready,” he added.