On July 15, US President Donald Trump announced that he had reached a new trade agreement with Indonesia, including a 19% tariff on imported goods.
Hours after announcing it on the social network Truth Social, Mr. Trump told reporters that the agreement called on Indonesia not to impose tariffs on goods exported from the US, while the US would impose a basic import tax of 19,9% on goods imported from Indonesia.
Mr. Trump affirmed that the deal has been "completed". However, the Indonesian government has not made any official announcement about this as of the afternoon of the same day.
Mr. Trump added that Indonesia has committed to buying goods from the US, including $15 billion in energy, $4.5 billion in agricultural products and 50 aircraft produced by Boeing, many of which are in the 777 series.
The US president also mentioned the possibility of tax easing on copper - a key export commodity of Indonesia - when he said that this Southeast Asian country is "famous for high-quality copper". Previously, Mr. Trump announced that he would impose a 50% tax on all copper imports starting from August 1.
According to data from the US Department of Commerce, Indonesia exported about 20 million VND to the US last year, significantly lower than Chile (6 billion USD) and Canada (4 billion USD), two leading suppliers of copper to the US market.
Commenting on the deal, US Secretary of Commerce Howard Lutnick said: We dont pay taxes there, but they have to pay taxes here. We are reversing the imbalance in a positive direction for ourselves.
Mr. Trump also said that India is taking similar steps to move towards a trade deal with the US. In April, Washington imposed a 32% tax on goods from India, before temporarily adjusting the minimum tax rate to 10% for 3 months and the deadline is expected to end on August 1.
The agreement with Indonesia is the fourth trade agreement that Mr. Trump announced in the past 3 months. He had previously promised to reach dozens of trade agreements with partners around the world, but in reality, negotiations were not easy.
Mr Trump's trade policy, with measures to suddenly change tax rates, has worried many US businesses. Some companies fear that orders they place overseas could suddenly be subject to high tariffs, as the President has the right to immediately adjust the tariffs on imported goods.
Mr. Trump said that US businesses can avoid this risk by bringing the production line back to the country. However, experts say that shifting production is not simple - requiring a long time, large costs, and the possibility of a shortage of suitable human resources. Domestic production costs may increase, causing product costs and affecting consumers.
To date, Indonesia has not yet responded officially to the US announcement. According to data from the US Department of Commerce, Indonesia is the 23rd largest trading partner of the US. In 2024, the US imported 28 billion USD in goods from Indonesia, mainly clothes and shoes; and exported about 10 billion USD to Indonesia, notably crude oil, gas and agricultural products.
