Official White House photo by Shealah Craighead
Trump Hints at Trade Deal with Indonesia
U.S. President Donald Trump has announced a new trade agreement with Indonesia, calling it a “great deal for everybody.” The announcement follows Trump’s earlier threat to impose a 32% tariff on Indonesian imports starting August 1. The new understanding, as described by Trump, would avert the tariff and strengthen bilateral economic ties.
Trump claimed he personally negotiated the deal with Indonesia’s President. However, no official text or detailed agreement has been released so far. A joint statement from both governments is expected in the coming days, which will likely clarify the terms of the arrangement.
The proposed deal is seen as part of Trump’s broader “tariffs-for-deals” strategy. Similar pressure-driven negotiations were recently conducted with the UK, China, and Vietnam. In response to the U.S. warning, Indonesia reportedly offered to increase its imports from the U.S., including agricultural goods, aircraft parts, and wheat. It also discussed reducing duties on American exports and hinted at a $34 billion investment proposal aimed at U.S. sectors such as energy and technology.
The U.S.-Indonesia trade deficit currently ranges between $18 billion and $28 billion, making Indonesia a key focus in Trump’s trade recalibration strategy. Analysts believe the agreement could help ease that gap while opening up opportunities for American exporters.
While markets responded positively to the announcement, some trade experts remain cautious, citing the lack of concrete details. Past deals announced under similar circumstances have faced delays or lacked full follow-through. Observers are also watching how this new agreement aligns with the European Union’s separate trade pact with Indonesia, which is expected to be finalized later this year.
The August 1 tariff deadline still stands unless a formal deal is signed and implemented. For now, the announcement signals a temporary diplomatic thaw and a step towards stabilising trade relations between the two countries.
