WASHINGTON D.C. / JAKARTA – July 16, 2025 – President Donald Trump has announced a significant new trade agreement with Indonesia, dramatically altering the landscape of bilateral commerce. The deal, revealed on Tuesday, slashes the proposed tariff on Indonesian goods entering the United States to 19 percent, while granting American exports unprecedented “Tariff and Non Tariff Barrier FREE” access to the Indonesian market.
The agreement comes after direct negotiations between President Trump and Indonesian President Prabowo Subianto, signaling a strategic shift in trade relations between the two nations. It represents a key component of Trump’s broader initiative to redefine global trade terms ahead of an August 1 deadline for new, elevated import levies.
Under the terms of the new pact, Indonesian products, which had faced a threatened 32 percent tariff, will now be subject to a 19 percent duty upon entering the U.S. In a reciprocal move that U.S. officials have termed an “asymmetric reset,” American goods, including agricultural products, will enjoy full market access to Indonesia without any import tariffs.
Crucially, Indonesia has committed to substantial purchases of American products as part of the deal. This new deal is positioned by the Trump administration as a vital step towards rebalancing this trade relationship and supporting domestic industries.