Indonesia and U.S. sign major trade deal slashing tariffs and barriers

Indonesia and the U.S. have sealed a sweeping trade agreement that slashes tariffs, lifts digital restrictions, and removes key export barriers, marking a major win for American exporters and automakers.

Indonesia will eliminate tariffs on more than 99% of its trade with the United States and scrap all non-tariff barriers for American goods, according to a senior Trump administration official.

The deal, announced on 15 July and detailed Tuesday, also reduces planned U.S. tariffs on Indonesian products from 32% to 19%.

As part of the agreement, Indonesia will abandon its plans to impose tariffs on internet data flows and support the extension of a global moratorium on e-commerce duties under the World Trade Organization.

Additionally, the country will revoke recent pre-shipment inspection rules that disrupted U.S. agricultural exports and contributed to a rising U.S. farm trade deficit.

The deal is seen as a significant boost for U.S. automakers, with Indonesia agreeing to recognize U.S. Federal Motor Vehicle Safety Standards for vehicles exported to its market of 280 million people.

It also includes the removal of export restrictions on critical minerals and local content rules affecting goods shipped to the U.S.

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