Trump Lowers Indonesian Import Tariffs to 19 Percent

TEMPO.CO, Jakarta - The President of the United States, Donald Trump, has decided to reduce the amount of reciprocal tariffs on Indonesian import products. The previously set reciprocal tariff of 32 percent has been reduced to 19 percent.

This reduction in import tariffs comes with consequences. Exports from America to Indonesia will be free from tariffs and non-tariff barriers.

"Indonesia will pay the United States a 19% Tariff on all Goods they export to us, while U.S. exports to Indonesia are to be Tariff and Non Tariff Barrier FREE," Trump wrote via his @realDonaldTrump account on the Truth Social media on Tuesday, July 16, 2025.

Trump referred to this agreement as a historic deal reached after direct talks with President Prabowo Subianto. He claimed that, for the first time in history, the United States gained full and total access to the entire Indonesian market.

As part of the agreement, Trump stated that Indonesia has also committed to investing in a number of American products. "Indonesia has committed to purchasing $15 Billion Dollars in U.S. Energy, $4.5 Billion Dollars in American Agricultural Products, and 50 Boeing Jets, many of them 777s," he said.

The 45th and 47th President of the United States emphasized that this agreement provides a great opportunity for American farmers, breeders, and fishermen to access the Indonesian market, which has a population of more than 280 million people. He also stressed that if there is re-export from other countries with higher tariffs, those tariffs will be added to those paid by Indonesia.

"Thank you to the People of Indonesia for your friendship and commitment to balancing our Trade Deficit. We will keep DELIVERING for the American people, and the People of Indonesia!" wrote Trump.

Last week, Trump imposed import tariffs of 32 percent for Indonesia. He stated that the tariff was still relatively small to reduce the trade deficit between the two countries.

In response to the policy, Coordinating Minister for Economic Affairs Airlangga Hartarto immediately went to the United States to conduct negotiations. The Indonesian government stated that there is still a chance for diplomacy until the tariff takes effect on August 1, 2025.

"We do not consider this to be settled because in their letter they also stated that the tariffs will apply in August," said the Spokesperson for the Coordinating Ministry for Economic Affairs, Haryo Limanseto, at the Coordinating Ministry for Economic Affairs office in Jakarta, Wednesday, July 9, 2025.

Ilona Estherina and Anastasya Lavenia Yudi contributed to the writing of this article.

Editor's Choice: Trump Claims "Great" Trade Deal Reached with Indonesia After Talks with Prabowo

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