U.S. President Donald Trump announced on Tuesday a 19% tariff on goods from Indonesia as part of a renegotiated trade agreement, emphasizing his administration’s push for stricter trade terms. He also disclosed plans for additional tariffs, including on pharmaceuticals, and suggested similar deals with other nations are imminent. The move aligns with Trump’s long-standing goal of reducing the U.S. trade deficit and reshaping global trade dynamics.
The Indonesia deal follows a template recently applied to Vietnam, doubling the previous 10% tariff on imports while exempting U.S. exports. It includes measures to prevent Chinese goods from bypassing tariffs via transshipment and commits Indonesia to purchasing American energy products, farm goods, and Boeing aircraft. Trump claimed the agreement would bring in $15 billion in energy sales, $4.5 billion in agricultural exports, and 50 Boeing jet orders, though no timeline was provided.
With an August 1 deadline looming—when broader U.S. import tariffs are set to rise—the administration is rushing to finalize agreements with smaller trade partners. The European Union, America’s largest trading partner, is preparing retaliatory measures if negotiations collapse. Meanwhile, Trump’s aggressive tariff policies have disrupted decades of trade liberalization, sparking market volatility and fears of inflation.
Analysts estimate that average U.S. tariff rates have surged to nearly 20%, the highest since 1933. Trump defended the approach, stating, “They are going to pay 19%, and we are going to pay nothing,” while hinting at more deals to come. However, critics warn that the haphazard rollout risks destabilizing global trade networks and harming U.S. economic interests in the long run.