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US reaches trade deal with Indonesia. Trump announces 19% tariffs

Tuesday, July 15


Indonesia and the United States (US) reached a trade agreement on Tuesday, US President Donald Trump announced in a post on his social media platform Truth Social.

The agreement provides for a 19% tariff on U.S. imports of products from Indonesia, while U.S. exports to the country will be tax-free."They're paying 19% and we're paying nothing," Trump told reporters at the White House on Tuesday."We're going to have full access to Indonesia," the Republican added.

Over the past week, Trump has sent letters to several countries in an attempt to increase pressure on U.S. trading partners ahead of an August 1 deadline for higher reciprocal tariffs to take effect. The pact with Indonesia, which was threatened with a 32% tariff in April, is the first to be reached with a country targeted by one of these letters.

Trump, who announced the agreement on social media, did not provide any details about the agreement between the two countries. The Southeast Asian country—which is also the region's largest economy—and the US are reportedly preparing a joint statement that will provide additional details about the agreement, Susiwijono Moegiarso, secretary of Indonesia's Coordinating Ministry for Economic Affairs, wrote on Tuesday in a message cited by Bloomberg.

A deal with Indonesia is the fourth announced by Trump with U.S. trading partners, after Vietnam and the United Kingdom. The U.S. and China also reached a tariff truce that includes the resumption of trade in critical minerals and technology between the world's two largest economies.

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