On July 22, 2025, President Donald J. Trump announced a significant trade agreement between the United States and Indonesia aimed at improving market access for American goods. The agreement includes key measures such as eliminating tariffs on over 99% of U.S. exports and addressing various non-tariff barriers that have historically restricted U.S. companies’ competitiveness in the Indonesian market. Furthermore, the deal outlines commitments in areas like digital trade, agricultural exports, and labor standards, with the goal of enhancing economic cooperation between the two nations.

The trade deal establishes a reciprocal tariff rate of 19% for Indonesian goods entering the United States and addresses a wide range of non-tariff barriers to facilitate smoother trade relations. Indonesia has committed to reforms that include exempting U.S. products from local content requirements and ensuring fair treatment for U.S. agricultural exports. Additionally, both countries will collaborate to strengthen supply chain resilience and improve labor standards, including measures against forced labor practices.

This agreement is expected to significantly reduce the current trade deficit of $17.9 billion that the U.S. faces with Indonesia by enhancing export opportunities for American businesses. The deal reflects the administration’s ongoing efforts to address unfair trade practices and promote American economic interests abroad. Moving forward, the U.S. and Indonesia will finalize the details of this agreement to secure its benefits for American workers and businesses.

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