The United States and Indonesia have reached a historic trade agreement that will eliminate tariffs on over 99% of US goods exported to Indonesia and remove nearly all non-tariff barriers for American firms.
In exchange, the US will impose a 19% tariff on Indonesian goods—significantly lower than the previously threatened 32%—and Indonesia will lift export restrictions on critical minerals, benefiting US industries. The deal is expected to unlock at least $50 billion in new market access for US commodities, including major purchases of agricultural products and Boeing jets by Indonesia. The agreement also addresses digital trade barriers and is seen as a major win for American businesses, while Indonesia secures continued access to the US market for key exports like palm oil.
This bilateral pact signals a shift in global trade dynamics, with the US deepening ties in Southeast Asia and sidelining traditional partners like the EU.
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