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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% โa breakthrough in tariff alignment and market fairness.
Key Terms of the U.S.โIndonesia Agreement on Reciprocal Trade
1. Eliminating Tariff Barriers
Indonesia will eliminate tariff barriersโon a preferential basisโon over 99% of U.S. products exported to Indonesia, including:
Agricultural products
Health products
Seafood
Information and communications technology
Automotive products
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:
Exempt U.S. companies from local content requirements
Accept U.S. motor vehicle safety and emissions standards
Recognize FDA approvals for medical devices and pharmaceuticals
Remove burdensome certification and labeling rules for U.S. products
Lift import restrictions on remanufactured goods and parts
Eliminate pre-shipment inspection requirements
Adopt good regulatory practices
Address long-standing intellectual property issues
Improve conformity assessment procedures
3. Breaking Down Non-Tariff Barriers for U.S. Agricultural Exports
Indonesia has committed to:
Exempt all U.S. food and agricultural products from import licensing and commodity balance requirements
Ensure fairness and transparency on geographical indications (GIs) , including meats and cheeses
Provide permanent Fresh Food of Plant Origin (FFPO) designation for U.S. plant exports
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 agreementโ excluding third-country abuse .
5. Removing Barriers for Digital Trade
Indonesia will:
Eliminate tariffs on intangible digital products
Suspend import declarations on such items
Support a permanent WTO moratorium on customs duties for electronic transmissions
Implement WTO Joint Initiative on Services Domestic Regulation
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:
Join the Global Forum on Steel Excess Capacity
Strengthen supply chain resilience with the U.S.
Remove export restrictions on all U.S.-bound industrial commodities, including critical minerals
Cooperate on duty evasion , export controls, and investment screening
7. Improving Labor Standards
Indonesia will:
Adopt and enforce a forced labor import ban
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:
Agriculture
Aerospace
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.
Indonesia is the 15th largest goods trade deficit partner for the U.S.
The 2024 U.S. goods trade deficit with Indonesia was $17.9 billion
Before this deal, Indonesiaโs 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.
On April 2 , President Trump declared a national emergency in response to the structural causes of the U.S. trade deficit
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 โall at once.
This is what winning looks like.