US Indonesia Trade Agreement sets 0% tariff vs Indonesia 19% rate
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president Donald Trump On Tuesday, the US announced that it had reached a trade agreement with the Republic of Indonesia. This eliminates approximately 99% of the tariff barriers between the two countries regarding industries sent to the island nations and US food and agricultural products.
“It is my great honor to announce a trade agreement with the Republic of Indonesia, as represented by the highly respected President Prabowo Subianto,” Trump said in his post on True Society. Customs barriers. ”
Trump said the US will sell American-made products to Indonesia at a 0% tariff rate, while Indonesia will pay 19% on all products shipped to the US.
“In addition, Indonesia will not only sign large contracts worth billions of dollars to purchase Boeing aircraft, American produce and American energy, but will also supply the United States with valuable and important minerals,” the president said. “This transaction is a huge victory for automakers, tech companies, workers, farmers, ranchers and manufacturers.”
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President Donald Trump announced that he would reach a trade agreement between Indonesia and the United States on July 22, 2025, almost eliminating tariff barriers. (Thierry Monasse / Getty Images / Getty Images)
Under the agreement, Indonesia said it is committed to protecting internationally recognized labor rights.
Indonesia has also agreed to adopt and implement a ban on importing goods produced by forced or forced labor.
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US President Donald Trump holds the “mutual tariffs” chart while speaking during the “American wealthy Again” trade announcement event at Rose Garden held at the White House in Washington, D.C. on April 2, 2025. (Chip Somodevilla / Getty Images / Getty Images)
Indonesia has also agreed to amend the Labor Law to ensure that workers’ rights and collective bargaining for freedom of association and workers are fully protected.
The deal comes on the same day Trump announced a trade deal with the Philippines after meeting with country chief Ferdinand Marcos Jr. in his oval office.
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Philippine President Donald Trump and Ferdinand Marcos Jr. during a meeting at the White House Oval Office in Washington, DC on Tuesday, July 22, 2025. (Getty Images/Getty Images)
“Philippine President Ferdinand Marcos is leaving White House, With all his many representatives. It was a beautiful visit and we concluded our trade deal. That will open the Philippines with the US, with zero tariffs,” Trump wrote in the True Society.
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“The Philippines will do that Pay 19% customs duties. Furthermore, we will work together militarily,” Trump added. “It was a great honor to be with the President. He is very respected in his country. He is also a very good, and strict negotiator. We will expand on the warmest things about the great people of the Philippines!”
Danielle Wallace of Fox News Digital contributed to this report.