A central aim of the Trump administration is to create reciprocal trade with the nations of the world. President Donald Trump took another step toward doing just that as he announced a landmark trade deal with Indonesia. This agreement will provide Americans with unprecedented market access to this southeast Asian nation unlocking breakthroughs for America’s manufacturing, agriculture, and digital sectors, according to the White House.
Under this deal, Indonesia will pay the United States a reciprocal tariff rate of 19 percent. Indonesia committed to eliminating tariff barriers, on a preferential basis, on over 99 percent of U.S. products exported to Indonesia across all sectors. This includes agricultural products, health products, seafood, information and communications technology, automotive products, and chemicals. This will create market access opportunities for the full range of U.S. exports, supporting high-quality American jobs.
Indonesia has also committed to address and prevent barriers to U.S. agricultural products in the Indonesian market.
The United States and Indonesia will negotiate rules of origin, which are criteria used to determine the national source of a product. They help identify where a product was made and ensure that trade agreements benefit the countries involved and not third countries.
The United States and Indonesia will finalize commitments on digital trade, services, and investment. This includes Indonesia’s commitment to provide certainty regarding the ability to move personal data out of its territory to the United States.
Indonesia has committed to join the Global Forum on Steel Excess Capacity and take actions to address global excess capacity in the steel sector and its impacts. The United States and Indonesia are committed to strengthening cooperation to increase supply chain resilience. This includes addressing duty evasion and cooperating on export controls and investment security. Indonesia will remove restrictions on exports to the United States for all industrial commodities, including critical minerals.
Indonesia has committed to adopt and implement a forced labor import ban and remove provisions that restrict workers and unions from exercising freedom of association and collective bargaining rights.
President Trump has delivered a forward-looking and tough trade deal that will benefit American workers, exporters, farmers, and digital innovators. This agreement is what winning looks and will feel like for all Americans, noted the White House.
The trade deal with Indonesia shows that America can defend its domestic production and strengthen its defense industrial base while obtaining expansive market access with its trading partners.
