WASHINGTON: The United States and Indonesia have reached a trade agreement that will lower tariffs and ease restrictions on critical mineral exports, the White House confirmed.
The deal, described as a “huge win” by former President Donald Trump, reduces US tariffs on Indonesian goods from 32% to 19%.
Under the agreement, Indonesia will eliminate 99% of its tariff barriers for American industrial, tech, and agricultural products.
“Indonesia will supply the United States with their precious Critical Minerals,“ Trump stated on his Truth Social platform. The Southeast Asian nation is a major producer of copper, cobalt, and nickel, essential for manufacturing and renewable energy sectors.
A joint White House statement noted that certain Indonesian goods not readily available in the US may qualify for even lower tariffs.
Additionally, Indonesia will lift export restrictions on industrial commodities, including critical minerals.
A US official, speaking anonymously, revealed that Indonesia will also abandon plans to tax data flows, a move previously criticized as a “revenue grab” targeting American firms.
The country will further streamline imports by removing pre-shipment inspection requirements for US goods and accepting US motor vehicle safety standards.
The deal, expected to be finalized in the coming weeks, is projected to provide $50 billion in new market access and purchases by Indonesian firms.
This agreement follows similar pacts with Britain, Vietnam, and the Philippines, as the US seeks to rebalance trade relations ahead of an August 1 tariff deadline. - AFP
