Trump Announces Agreement with Indonesia, Reports Advancement with EU - Trade Negotiations: Trump Declares Agreement with Indonesia and Reports Advancement with the EU
In recent developments, President Donald Trump has announced a trade accord with Indonesia, although the specifics of the agreement remain undisclosed. This move comes as the EU and Indonesia have also reached a political agreement to finalize a free trade agreement by September, which could potentially impact U.S. exporters in the Indonesian market.
In a shift towards reciprocal trade relationships, the U.S. has imposed a new tariff rate of 32% on goods imported from Indonesia, effective August 1, 2025. This tariff is almost double the previous base tariff of 10%, which Trump imposed on almost all trading partners in April. A 19% tariff will still apply to the import of Indonesian goods into the United States.
Meanwhile, the EU is facing massive surcharges, with a 30% tariff on most goods set to begin from August 1. Trump has stated that the EU has been treating the U.S. badly but is now treating them nicely. However, there is no recent announcement on new trade agreements specifically between the U.S. and EU.
Trump negotiated directly with Indonesian President Prabowo Subianto, and it is reported that Indonesia has committed to purchasing 50 aircraft from Boeing, although the details of this commitment are yet to be disclosed. Furthermore, Indonesia will pay $4.5 billion for agricultural products from the U.S., and $15 billion for U.S. energy supplies, although the specifics of these agreements are not yet known.
The Indonesian government has not yet commented on the agreement, as mentioned earlier. Trump expects everyone to be happy with the new negotiations, but it remains to be seen how these changes will affect trade relations and the economies of the U.S., EU, and Indonesia. New negotiations with EU representatives are scheduled to take place in Washington on Tuesday.
- Donald Trump, in his role as US President, announced a "deal" with Indonesia that involves the Indonesian government purchasing 50 aircraft from Boeing and paying $4.5 billion for agricultural products, and $15 billion for US energy supplies, although the details are yet to be disclosed.
- The U.S. has imposed a new tariff rate of 32% on goods imported from Indonesia, effective August 1, 2025, which could potential impact U.S. exporters in the Indonesian market.
- A 19% tariff will still apply to the import of Indonesian goods into the United States, making it a reciprocal trade relationship as the EU faces massive surcharges with a 30% tariff on most goods.
- Politics in Washington continues to evolve as Trump negotiated directly with Indonesian President Prabowo Subianto, and new negotiations with EU representatives are scheduled to take place in Washington on Tuesday.
- This shift in trade policy-and-legislation, along with potential progress with the EU and ongoing war-and-conflicts, migration, crime-and-justice, accidents, fires, and other general-news events, are all dynamic elements that shape the landscape of the world's politics.
