Indonesia and the US have reached a trade agreement that eliminates tariffs on over 99% of US goods and reduces non-tariff barriers. In return, the US lowered tariffs on Indonesian products to 19%, alongside significant purchases of US jets, energy, and agricultural products.

Indonesia has agreed to eliminate tariffs on over 99% of US goods and remove non-tariff barriers for American firms following a trade deal with the US.

In return, the US will reduce threatened tariffs on Indonesian products from 32% to 19%. The deal, announced by former President Trump, is seen as a significant win for US industries, including automakers, tech companies, and farmers.

This follows the announcement by US President Donald Trump of a 19% tariff on Indonesian goods as part of a new trade agreement, with additional deals expected, on 15 July 2025.

The agreement includes a 19% tariff on Indonesian goods entering the US, with steeper penalties for goods that are transshipped to dodge higher duties. Trump also stated that Indonesia will purchase 50 Boeing jets, along with USD 15 billion in US energy and USD 4.5 billion in American agricultural products, which includes USD 500 million worth of US wheat.

Earlier, Indonesia proposed reducing tariffs on key US exports, including agricultural products, to nearly zero, in exchange for reciprocal tariff adjustments from the US, as announced by Coordinating Minister Airlangga Hartarto on 4 July.

Other key points of the agreement include:

  • Indonesia scrapping plans for tariffs on internet data flows and supporting a WTO moratorium on e-commerce duties.
  • Removal of pre-shipment inspections and verifications that hindered US agricultural exports.
  • Acceptance of US Federal Motor Vehicle Safety Standards for vehicles exported to Indonesia.
  • Elimination of export restrictions on industrial commodities and local content requirements for products shipped to the US.
  • Addressing import restrictions and licensing barriers for US remanufactured goods.
  • Indonesia joining the Global Forum on Steel Excess Capacity to tackle global steel overproduction.

Negotiators will finalise the agreement in the coming weeks, with the deal marking a significant step in strengthening US-Indonesia trade relations.