Trump Announces Trade Deal with Indonesia
Trump Announces Trade Deal with Indonesia
Donald Trump said the US has reached a trade deal with Indonesia that will result in goods from the south-east Asian nation to the US being hit with a 19 per cent tariff and Jakarta buying American energy and Boeing jets.
The preliminary deal is the first since Trump last week sent letters to more than 20 trading partners informing them of the US tariff levels on their exports if they do not reach an agreement by August 1.
The US president threatened Jakarta with a 32 per cent levy in last week’s letter, but said on Tuesday he thought the latest arrangement — under which America will pay zero tariffs on exports to Indonesia — was “a good deal for both parties”.
Trump told reporters he had spoken to his Indonesian counterpart, Prabowo Subianto, and that the deal with Jakarta would give the US “full access to Indonesia, everything”.
In a social media post following his remarks, Trump wrote that Indonesia had committed to buying $15bn worth of energy exports and $4.5bn of agricultural goods from the US. It would also buy “50 Boeing Jets, many of them 777’s”.
Indonesia’s co-ordinating ministry for economic affairs declined to comment on the deal on Wednesday.
Trump told reporters Indonesia was “very strong on copper”, the metal on which he last week imposed a 50 per cent levy, and was also in possession of “some very valuable” critical minerals.
“We have a couple of those deals that are going to be announced,” Trump said on Tuesday as he informed reporters of the agreement with Jakarta. He said a deal with India was “working along that same line”.
The US has also reached trade deals with the UK, Vietnam and China, although it has only produced a written agreement with London.
Trump’s limited deal with Vietnam was announced on social media. There are very few details available about what American and Chinese officials agreed over talks in London and Geneva earlier this year.
In a move that echoed the deal with Vietnam, Trump warned Jakarta that if any goods were rerouted through Indonesia by countries seeking to avoid the high tariffs they would incur by shipping directly to the US — a process known as transshipment — then “that [higher] tariff will be added on to the Tariff that Indonesia is paying”.
“Indonesia has some great products, and they also have some very valuable earths and various other materials. One of the things that you know they are known for is very high-quality copper, which we will be using,” Trump said.
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