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US and Indonesia sign deal to cut tariffs to 19%
| United Kingdom | business | ✓ Verified - bbc.com

US and Indonesia sign deal to cut tariffs to 19%

#US-Indonesia trade deal #Tariff reduction #Trade barriers #Donald Trump #Prabowo Subianto #Economic cooperation #Market access

📌 Key Takeaways

  • US and Indonesia agreed to reduce tariffs from 32% to 19%
  • Indonesia will cut trade barriers on 99% of American imports
  • Indonesia will accept US standards for automotive, food, and medical products
  • The deal was signed during Prabowo's visit to Washington for the 'Board of Peace' meeting

📖 Full Retelling

US President Donald Trump and Indonesian President Prabowo Subianto finalized an agreement in Washington on Thursday to lower US tariffs on Indonesian goods to 19% from 32%, with Indonesia committing to reduce trade barriers on over 99% of American imports including agriculture, healthcare, seafood, technology, and automotive products, as part of efforts to break down trade barriers and advance mutual economic interests. The White House announced that Indonesia will open its markets by accepting US car safety and emissions standards, as well as American food and drug standards for medical devices and pharmaceutical products. Additionally, Indonesia will ease barriers on American agricultural and technology goods entering its market, marking a significant step in bilateral trade relations between the two nations. US Trade Representative Jamieson Greer emphasized that the agreement 'breaks down trade barriers' while advancing the interests of the American people, with President Prabowo signing the deal during his visit to Washington to attend the first meeting of the Trump-led 'Board of Peace,' which focused on discussing the reconstruction of Gaza.

🏷️ Themes

Trade, Diplomacy, Economic cooperation

📚 Related People & Topics

Trade barrier

Restrictions limiting international trade

Trade barriers are government-induced restrictions on international trade. Most trade barriers work on the same principle: the imposition of some sort of cost (money, time, bureaucracy, quota) on trade that alters the price or availability of the traded products. Barriers take the form of tariffs (...

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Prabowo Subianto

Prabowo Subianto

President of Indonesia since 2024

Prabowo Subianto Djojohadikusumo (born 17 October 1951) is an Indonesian politician, businessman, and retired military officer who has served as the eighth president of Indonesia since 2024. He previously served as the 26th minister of defense under President Joko Widodo from 2019 to 2024. Prabowo i...

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Donald Trump

Donald Trump

President of the United States (2017–2021; since 2025)

Donald John Trump (born June 14, 1946) is an American politician, media personality, and businessman who is the 47th president of the United States. A member of the Republican Party, he served as the 45th president from 2017 to 2021. Born into a wealthy New York City family, Trump graduated from the...

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Connections for Trade barrier:

🌐 Critical raw materials 1 shared
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Deep Analysis

Why It Matters

The agreement reduces tariffs from 32% to 19%, making Indonesian goods cheaper in the US and vice versa. It signals a strengthening of US-Indonesia trade ties and could boost economic growth in both countries.

Context & Background

  • Tariffs on Indonesian imports were 32% before the deal
  • Indonesia agreed to lower barriers on 99% of US goods
  • The deal includes compliance with US safety and drug standards

What Happens Next

Indonesia will implement the tariff cuts and open its markets to US products, while the US will monitor compliance with safety and emissions guidelines. Both governments may use the framework to negotiate further trade liberalization in the future.

Frequently Asked Questions

What goods are affected by the tariff reduction?

Almost all US imports to Indonesia, including agriculture, healthcare, seafood, technology, and cars.

Does the deal include any tariff exemptions?

Yes, Indonesia will receive tariff exemptions on certain clothing and textiles made with US cotton and man-made materials.

Original Source
US and Indonesia sign deal to cut tariffs to 19% 6 minutes ago Share Save Osmond Chia Business reporter Share Save President Donald Trump and his Indonesian counterpart Prabowo Subianto have finalised an agreement to lower US tariffs on the South East Asian country to 19% from 32%. Under the deal, Indonesia will cut trade barriers on more than 99% of American imports - including agriculture, healthcare, seafood, technology and car-related goods - the White House said on Thursday . Washington said it granted tariff exemptions on some Indonesian goods, including certain clothing and textiles that are produced with cotton and man-made materials from the US. US trade representative Jamieson Greer said the agreement will "breaks down trade barriers" while advancing the interests of the American people. Indonesia's President Prabowo signed the deal on Thursday during a visit to Washington to attend the first meeting of the Trump-led "Board of Peace" to discuss the reconstruction of Gaza. The White House said that Indonesia will open up its markets by accepting US car safety and emissions guidelines, as well as American food and drug standards for its medical devices and pharmaceutical products. Indonesia will also ease barriers on American agricultural and technology goods being sold in its market. International Business Trump tariffs Indonesia Trade
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Source

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