Indonesia Axes 99% of Tariffs on U.S. Goods as Washington Cuts Duties to 19%

The United States and Indonesia released a joint statement outlining a framework for a reciprocal trade pact under which Jakarta will abolish tariffs on more than 99% of American goods and remove all non-tariff barriers that have hindered U.S. companies. The accord, announced on 22 July, covers agricultural, industrial, technology and consumer products and is intended to be converted into a legally binding agreement within weeks. In addition to scrapping duties, Indonesia agreed to accept U.S. Federal Motor Vehicle Safety Standards and Food and Drug Administration rules for autos and pharmaceuticals, lift pre-shipment inspections of U.S. farm exports, and abandon plans to tax cross-border data flows. Jakarta will also eliminate export restrictions and local-content requirements on critical minerals and join the Global Forum on Steel Excess Capacity. Washington, for its part, will scale back the blanket 32% tariff it had threatened to impose on Indonesian goods to 19%, matching concessions recently offered to other Southeast Asian partners. A White House fact sheet said further reductions could be considered for commodities not produced in the United States. The framework is one of several deals the Trump administration is trying to conclude before 1 August, when higher reciprocal tariffs are set to take effect. U.S. officials said the Indonesian agreement should help restore a surplus in agricultural trade and expand opportunities for American automakers, technology firms and manufacturers in the world’s fourth-most-populous nation.