Washington, July 16, 2025 – The Europe Today: U.S. President Donald Trump announced on Wednesday that all goods imported from Indonesia into the United States will now be subject to a 19 percent tariff, following direct negotiations with Indonesian President Prabowo Subianto.
“Indonesia will pay the United States a 19% Tariff on all Goods they export to us,” President Trump wrote on his social media platform, Truth Social.
The newly announced tariff represents a significant reduction from the previously proposed 32 percent rate Trump unveiled in April 2025. The adjustment reflects Indonesia’s persistent diplomatic and economic efforts to renegotiate the terms, which included multiple rounds of high-level discussions.
According to reports, President Trump had reaffirmed his intention to maintain the original 32 percent tariff in a July 7 letter to President Prabowo. However, a breakthrough came after Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, held crucial meetings in Washington with U.S. Secretary of Commerce and the U.S. Trade Representative on July 9. As a result, the U.S. agreed to delay implementation of the tariff for three weeks to allow further dialogue.
In addition to the revised tariff structure, President Trump announced that U.S. exports to Indonesia will be free from all tariff and non-tariff barriers. Furthermore, Indonesia has agreed to impose the 19 percent tariff on any trans-shipped goods originating from countries with higher tariff levels, a move aimed at preventing circumvention.
As part of the comprehensive trade arrangement, Indonesia has committed to significant purchases of American goods, including:
- US$15 billion in U.S. energy products
- US$4.5 billion in American agricultural goods
- 50 Boeing aircraft, predominantly Boeing 777 passenger jets
“This landmark Deal opens up Indonesia’s ENTIRE MARKET to the United States for the first time in history,” President Trump declared.
He concluded his remarks by expressing appreciation to the people of Indonesia for their “friendship and commitment to balancing our Trade Deficit.”
Further details on the agreement, including implementation timelines and sector-specific regulations, are expected to be released by both governments in the coming days.
