U.S. President Donald Trump announced a new trade deal with Indonesia, calling it a historic agreement. He said that after speaking with Indonesian President Prabowo Subianto, both countries have agreed on a deal that will open Indonesia’s entire market to the United States for the first time ever.
Key Points of the Deal:
Indonesia will buy $15 billion worth of U.S. energy, $4.5 billion in American agricultural products, and 50 Boeing jets, mostly 777 models.
U.S. farmers, ranchers, and fishermen will now have full access to Indonesia’s large market of over 280 million people.
Indonesia will pay a 19% tariff on all goods they export to the U.S.
In return, U.S. exports to Indonesia will be free from tariffs and non-tariff barriers.
If Indonesia brings in goods from another country with higher tariffs, they will have to match those higher tariffs.
Trump thanked the people of Indonesia and promised to keep delivering strong results for both Americans and Indonesians.
Trade Snapshot: U.S.–Indonesia (2024)
In 2024, total U.S. goods trade with Indonesia was around $38.3 billion.
U.S. exports to Indonesia were $10.2 billion, a 3.7% increase from 2023.
U.S. imports from Indonesia were $28.1 billion, up 4.8% from the previous year.
The trade deficit (imports minus exports) was $17.9 billion, a 5.4% rise from 2023.
This new deal aims to reduce that trade gap and strengthen business ties between the two countries.
Trump Says Trade Deal with India Moving Forward
U.S. President Donald Trump said that progress is being made on a trade deal with India, stating confidently, “We’re going to have access into India.” While the final details are still being worked out, Trump credited his administration’s use of tariffs for opening up markets that were earlier closed to American businesses. He explained that before these efforts, U.S. companies had little to no access to many countries, but that is now changing because of the steps taken on tariffs.
Update: India Seeks Better Trade Deal Than Indonesia and Vietnam
July 17, 2025
Indian officials are trying to finalize a trade deal with U.S. President Donald Trump before the August 1 deadline. They hope to secure a lower tariff rate than what Trump agreed to with Indonesia. Trump later told reporters that the deal with India would be similar, giving the U.S. access to the Indian market.
However, Indian officials want even more favorable terms—lower than the 19% given to Indonesia and the 20% tariff planned for Vietnam. They believe India should get better rates because it’s not seen as a transshipment hub like Vietnam or other Southeast Asian nations. A team from India is currently in Washington to push forward the talks.
(Source: Bloomberg News | This report is based on information from Bloomberg)
