President Donald Trump announced further details of the trade deal between the United States and Indonesia brokered this month on Tuesday, ahead of a self-imposed Aug. 1 deadline that was imposed on U.S. trade partners.
“It is agreed that Indonesia will be Open Market to American Industrial and Tech Products, and Agricultural Goods, by eliminating 99% of their Tariff Barriers,” Trump wrote on Truth Social.
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Indonesia initially agreed to drop its tariffs on U.S. exports to zero percent when Trump teased the agreement last week. In return, Trump lowered his “Liberation Day” tariffs against Indonesia to 19% after it was previously targeted for 32% tariffs.
New details from the administration gave more clarity on the framework:
“Indonesia will supply the United States with their precious Critical Minerals, as well as sign BIG Deals, worth Tens of Billions of Dollars, to purchase Boeing Aircraft, American Farm products, and American Energy,” Trump posted. “This Deal is a HUGE WIN for our Automakers, Tech Companies, Workers, Farmers, Ranchers, and Manufacturers.”
In addressing non-tariff barriers on the U.S. exports, Indonesia has agreed to accept U.S. federal motor vehicle safety standards, remove export restrictions on critical minerals, remove pre-shipment inspection or verification requirements on imports of U.S. goods, and will exempt U.S. companies from local content requirements, a senior administration official told reporters earlier on Tuesday.
They’ve also agreed to accept U.S. Food and Drug Administration certificates, prior marketing authorizations for medical devices and pharmaceuticals, to drop an effort to tax the flow of internet data, and support a permanent moratorium on customs duties on electronic transmissions at the World Trade Organization.
“Today’s deal is significant because it shows exactly how the president is resetting the terms of trade to ensure that we can reduce our deficit, both by regulating imports and also expanding exports,” a senior Trump administration official told reporters.
“All told, this deal is worth at least $50 billion to the United States in terms of new market access, as well as purchases that Indonesian companies intend to make [on] U.S. goods,” the official added.
Trump claimed that Indonesia had previously committed to purchasing $15 billion in U.S. energy, $4.5 billion in American agricultural products, and 50 Boeing Jets.
Trump attempted to reset U.S. trade deals with foreign partners earlier this year when he announced his so-called “reciprocal tariffs.”
TRUMP ANNOUNCES TRADE AGREEMENT WITH PHILIPPINE PRESIDENT AFTER WHITE HOUSE MEETING
The president also announced a new trade deal with the Philippines after President Ferdinand “Bongbong” Marcos Jr. visited the White House on Tuesday. Under the agreement, the Philippines will pay a 19% tariff. Trump has also negotiated deals with Vietnam and the United Kingdom.
Trump has threatened high tariffs on exports to foreign trade partners on Aug. 1 if new agreements are not reached.