The trade agreement imposes stricter penalties for transhipment and Indonesia’s commitment to purchasing 50 Boeing jets and USD 19.5 billion in US energy and agricultural products.
US President Donald Trump announced 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.
“As part of the Agreement, Indonesia has committed to purchasing USD 15 Billion Dollars in US Energy, USD 4.5 Billion Dollars in American Agricultural Products, and 50 Boeing Jets, many of them 777’s,” Trump wrote on Truth Social.
Last week, Trump had threatened a 32% tariff on Indonesian imports, set to take effect on 1 August 2025. It’s unclear when the new, lower tariff will take effect or over what period the purchases will occur.
Earlier, on 4 July, Indonesia’s Coordinating Minister for Economic Affairs and lead negotiator, Airlangga Hartarto, announced that Indonesia had proposed cutting tariffs on key US exports, including agricultural products, to nearly zero, contingent upon reciprocal US tariff adjustments.
The country also plans to buy USD 500 million worth of US wheat.
On 2 April 2025, Trump signed an executive order imposing a 10% baseline tariff on imports from all countries, including Indonesia.
