The U.S. and Indonesia have come to terms on a framework agreement related to tariffs and other trade policies, according to a joint statement released by the White House Tuesday.
The two countries will engage in further negotiations in the coming weeks to formalize the pact, labeled the U.S.-Indonesia Agreement on Reciprocal Trade, per the statement.
Should the agreement be finalized, the U.S. will impose a 19% tariff on imports from Indonesia, while Indonesia will eliminate levies on 99% of U.S. imports, including those on automotive and agricultural products.
Beyond tariffs, the agreement features a swath of other provisions related to industrial, agricultural and digital trade, as well as economic security and labor and environmental regulation. For example, the deal includes terms removing restrictions on exports of critical minerals and other industrial commodities to the U.S.
As part of a finalized agreement, Indonesia also would procure $4.5 billion of agricultural products, including soybeans, wheat and cotton, from the U.S, as well as $3.2 billion of aircraft and $15 billion of energy products.
Imports from Indonesia made up 0.7% of U.S. trade last year, per U.S. International Trade Commission data. The U.S. had a roughly $18 billion trade deficit with the country.
President Donald Trump first indicated the two countries had reached an agreement last week, shortly after rolling out new country-specific tariff rates set to begin Aug. 1. Imports from Indonesia were set to face a 32% duty, per a letter Trump shared on July 7.
The U.K. also secured a trade agreement framework with the Trump administration, finalizing some of the provisions last month. Meanwhile, a deal Trump said he struck with Vietnam earlier this month has yet to be officially confirmed by the country’s leadership.
The White House also remains in negotiations with China, although both countries agreed to lower tariffs until Aug. 12. On Tuesday, Treasury Secretary Scott Bessent told Fox Business that the deadline could be extended as he gets set to travel to Sweden to negotiate with China officials next week.
