Indonesia bends to Trump’s trade terms to avoid 32% tariff blow
The country scraps tariffs on US goods and pledges to buy billions in US goods to keep access to its second-largest export market and save jobs, but the trade-offs are unsettling
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[JAKARTA] In a move that underscores the bargaining power of the US under President Donald Trump’s trade-first agenda, Indonesia has agreed to eliminate tariffs on American goods and commit to billions in US purchases in exchange for reduced tariffs on its own exports.
Under the deal that would help South-east Asia’s largest economy avoid a major trade setback, the US will lower the tariffs on Indonesian exports from a threatened 32 per cent to 19 per cent.
This month, Vietnam also reached a deal with Washington – tariffs on its exports were reduced to 20 per cent in return for it granting the US tariff-free access to its market.
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