🇺🇸🤝🇮🇩 𝗛𝗶𝘀𝘁𝗼𝗿𝗶𝗰 𝗧𝗿𝗮𝗱𝗲 𝗗𝗲𝗮𝗹 𝗦𝗲𝗰𝘂𝗿𝗲𝗱
Fact Sheet: The United States and Indonesia Reach Historic Trade Deal
DELIVERING ON RECIPROCAL TRADE
President Donald J. Trump has announced a landmark trade agreement with Indonesia that unlocks previously inaccessible markets and secures major benefits for American manufacturing, agriculture, and digital sectors.
Under the deal, Indonesia will apply a reciprocal tariff rate of 19%—a breakthrough in tariff alignment and market fairness.
Key Terms of the U.S.–Indonesia Agreement on Reciprocal Trade
1. Eliminating Tariff Barriers
Indonesia will eliminate tariff barriers—on a preferential basis—on over 99% of U.S. products exported to Indonesia, including:
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Agricultural products
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Health products
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Seafood
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Information and communications technology
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Automotive products
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Chemicals
This opens new commercial opportunities and supports high-quality American jobs.
2. Breaking Down Non-Tariff Barriers for U.S. Industrial Exports
Indonesia will:
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Exempt U.S. companies from local content requirements
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Accept U.S. motor vehicle safety and emissions standards
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Recognize FDA approvals for medical devices and pharmaceuticals
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Remove burdensome certification and labeling rules for U.S. products
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Lift import restrictions on remanufactured goods and parts
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Eliminate pre-shipment inspection requirements
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Adopt good regulatory practices
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Address long-standing intellectual property issues
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Improve conformity assessment procedures
3. Breaking Down Non-Tariff Barriers for U.S. Agricultural Exports
Indonesia has committed to:
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Exempt all U.S. food and agricultural products from import licensing and commodity balance requirements
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Ensure fairness and transparency on geographical indications (GIs), including meats and cheeses
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Provide permanent Fresh Food of Plant Origin (FFPO) designation for U.S. plant exports
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Recognize U.S. regulatory oversight for meat, poultry, and dairy exports
4. Strengthening Rules of Origin
Both countries will negotiate clear and enforceable rules of origin to ensure that only U.S. and Indonesian goods benefit under the agreement—excluding third-country abuse.
5. Removing Barriers for Digital Trade
Indonesia will:
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Eliminate tariffs on intangible digital products
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Suspend import declarations on such items
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Support a permanent WTO moratorium on customs duties for electronic transmissions
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Implement WTO Joint Initiative on Services Domestic Regulation
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Recognize the U.S. as a jurisdiction providing adequate data protection, enabling cross-border data transfers
This fulfills long-standing requests from U.S. technology and service providers.
6. Aligning on Economic Security
Indonesia has committed to:
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Join the Global Forum on Steel Excess Capacity
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Strengthen supply chain resilience with the U.S.
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Remove export restrictions on all U.S.-bound industrial commodities, including critical minerals
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Cooperate on duty evasion, export controls, and investment screening
7. Improving Labor Standards
Indonesia will:
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Adopt and enforce a forced labor import ban
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Remove restrictions on worker and union rights, allowing freedom of association and collective bargaining
8. Notching Commercial Wins
The agreement recognizes major commercial deals in:
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Agriculture
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Aerospace
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Energy
These deals will further increase U.S. exports and deepen the trade relationship.
A DEFINED PATH FORWARD
In the coming weeks, the United States and Indonesia will finalize and memorialize the Agreement on Reciprocal Trade, ensuring these benefits are locked in for American businesses and workers.
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Indonesia is the 15th largest goods trade deficit partner for the U.S.
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The 2024 U.S. goods trade deficit with Indonesia was $17.9 billion
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Before this deal, Indonesia’s average applied tariff was 8%, compared to 3.3% in the U.S.
LIBERATING AMERICA FROM UNFAIR TRADE PRACTICES
Since Day One, President Trump has challenged the notion that American workers must tolerate unfair trade practices.
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On April 2, President Trump declared a national emergency in response to the structural causes of the U.S. trade deficit
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The administration is focused on reciprocal trade, domestic wage growth, and economic security
This historic trade deal shows that America can defend domestic production, support national security, and win access to global markets—all at once.
This is what winning looks like.
