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    Home»Business»US-Indonesia trade agreement sets 0% tariffs vs Indonesia’s 19% rate
    Business

    US-Indonesia trade agreement sets 0% tariffs vs Indonesia’s 19% rate

    Justin M. LarsonBy Justin M. LarsonJuly 22, 2025No Comments3 Mins Read
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    White House National Economic Council Director Kevin Hassett discusses interest rates, calls from President Donald Trump to pick a new Federal Reserve chair and more on ‘Varney & Co.’

    President Donald Trump announced Tuesday that the U.S. had reached a trade agreement with the Republic of Indonesia, which eliminates about 99% of the tariff barriers between the two countries when it comes to industrial and U.S. food and agricultural products sent to the island nation.

    “It is my Great Honor to announce our Trade Agreement with the Republic of Indonesia, as represented by their Highly Respected President, Prabowo Subianto,” Trump said in a post on Truth social “It is agreed that Indonesia will be Open Market to American Industrial and Tech Products, and Agricultural Goods, by eliminating 99% of their Tariff Barriers.”

    Trump said the U.S. will sell American-made products to Indonesia at a tariff rate of 0%, while Indonesia will pay 19% on all products shipped to the U.S.

    “In addition, Indonesia will supply the United States with their precious Critical Minerals, as well as sign BIG Deals, worth Tens of Billions of Dollars, to purchase Boeing Aircraft, American Farm products, and American Energy,” the president said. “This Deal is a HUGE WIN for our Automakers, Tech Companies, Workers, Farmers, Ranchers, and Manufacturers.”

    TRUMP SAYS CHINA AGREES TO ‘FULLY’ OPEN COUNTRY’S MARKETS TO US BUSINESSES

    President Of Indonesia Visits The EU

    President Donald Trump announced a trade deal had been reached between Indonesia and the U.S., nearly eliminating tariff barriers, on July 22, 2025. (Thierry Monasse/Getty Images / Getty Images)

    Under the agreement, Indonesia said it will commit to protecting internationally recognized labor rights. 

    Indonesia also agreed to adopt and implement a prohibition on the importation of goods produced by forced or compulsory labor. 

    TRUMP ANNOUNCES TRADE DEAL WITH THE PHILIPPINES

    Trump introducing tariffs

    U.S. President Donald Trump holds up a chart of “reciprocal tariffs” while speaking during a “Make America Wealthy Again” trade announcement event in the Rose Garden at the White House on April 2, 2025, in Washington, DC. (Chip Somodevilla/Getty Images / Getty Images)

    Indonesia also agreed to amend its labor laws to ensure workers’ rights to freedom of association and collective bargaining are fully protected.

    The deal comes the same day Trump announced a trade agreement with the Philippines after meeting with the nation’s president, Ferdinand Marcos Jr., in the Oval Office.

    TRUMP SIGNALS CHINA ‘VERY MUCH’ INTERESTED IN SECURING TRADE DEAL AHEAD OF SWITZERLAND NEGOTIATIONS

    Trump and Philippines president in the Oval Office

    President Donald Trump, right, and Ferdinand Marcos Jr., Philippines’ president, during a meeting in the Oval Office of the White House in Washington, DC, on Tuesday, July 22, 2025.  (Getty Images / Getty Images)

    “President Ferdinand Marcos, of the Philippines, is just leaving the White House, with all of his many Representatives. It was a beautiful visit, and we concluded our Trade Deal, whereby The Philippines is going OPEN MARKET with the United States, and ZERO Tariffs,” Trump wrote on Truth Social. 

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    “The Philippines will pay a 19% Tariff. In addition, we will work together Militarily,” Trump added. “It was a Great Honor to be with the President. He is Highly Respected in his Country, as he should be. He is also a very good, and tough, negotiator. We extend our warmest regards to the wonderful people of The Philippines!” 

    Fox News Digital’s Danielle Wallace contributed to this report.



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