THE United States and Indonesia have finalised a trade agreement establishing reciprocal tariff rates and addressing non-tariff barriers, the White House announced on Thursday, marking the latest in a series of bilateral deals pursued by President Donald Trump.
AFP, on Friday, reported that under the agreement, Indonesian goods entering the US will face a 19 per cent tariff, significantly lower than the previously threatened 32 per cent rate that had loomed over South-East Asia’s largest economy.
Indonesian government officials held a press conference at a hotel in central Washington to mark the formalisation of the reciprocal pact, which had originally been announced in July last year.
As part of the deal, Jakarta will exempt US companies from local content requirements and take steps to remove and prevent barriers affecting American agricultural products sold in Indonesia.
In return, Indonesia has agreed to purchase US$33 billion worth of American goods, including energy products, agricultural commodities and aviation-related items such as Boeing aircraft.
The accord comes amid a broader reshaping of US trade policy. After unsettling financial markets in the spring with plans to impose sweeping high tariffs, President Trump has since unveiled a series of negotiated trade arrangements.
On 2 February, he announced an agreement aimed at reducing tariffs on India. Earlier this week, he also revealed US investment commitments from Japan worth approximately US$36 billion as part of a trade deal between Washington and Tokyo announced in July 2025.
Despite the administration’s assertive trade stance, US government data show that the country’s goods trade deficit widened to a record high in 2025, underscoring the continuing imbalance in America’s external trade position. - February 20, 2026
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