Trump Announces Tariffs on Indonesia

On Tuesday, President Trump announced that his administration would establish a 19% tariff on goods from Indonesia while reducing the import tax rate imposed just last week.

“We’ve struck a deal with Indonesia. I’m well-regarded by their excellent president, who is both strong and smart, and we’ve made this agreement,” Trump told reporters at the White House. “Indonesia’s stance on copper is very solid, but we have full access to everything. We don’t pay tariffs, so it’s similar to the access we’ve always had.”

He added, “That’s likely the most significant aspect of the transaction; they’ll be paying 19%, while we’ll pay nothing. I think this works out well for both sides.”

Trump had previously sent a letter on July 7 indicating that Indonesia’s tariff rate was set at 32%. He had suggested a willingness to lower customs fees after communicating with his trading partner.

“The arrangements with Indonesia are extremely well-formulated, and I negotiated directly with their highly esteemed president. More details are forthcoming!” Trump noted in a social media post early Tuesday.

Earlier this month, Trump had warned that Indonesia, a major copper producer, could face tariffs as high as 50%. On Tuesday, he stated that the agreement would facilitate increased copper production within the U.S.

“Indonesia has some remarkable products, and they are rich in valuable earth materials,” the president said. “They’re particularly known for their high-quality copper.”

He also hinted at an upcoming deal with India, mentioning that discussions had been ongoing for several months.

“India is following a similar approach,” Trump explained. “We are going to gain access to India, and it’s important to note that previously we didn’t have access to these countries.”

In addition, Trump mentioned that he had set new tariff rates for approximately 20 trading partners, including 25% for Japan and Malaysia, 40% for Myanmar, and 36% for Thailand. Major trading partners like Canada, the European Union, and Mexico also faced new tax rates.

Regarding inflation, Trump remarked that the latest figures reveal it is “very high within acceptable limits.” The Labor Bureau reported a 0.3% rise in the consumer price index for the month, up 2.7% from the previous year.