Trump Reaches Trade Deal with Indonesia: Avoiding Customs Duties

Here’s a 10-point summary of the article:

1. US Trade Threats: Donald Trump threatened Indonesia with a 32% customs surcharge if a trade agreement wasn’t signed by August 1st.
2. Indonesian Negotiation: indonesia’s Economy Minister, Airlangga Hartarto, visited Washington to negotiate, announcing purchases of American agricultural and oil products.
3. Commitment of $34 Billion: Indonesian companies committed to spending a total of $34 billion as part of the trade discussions.
4. US Trade Deficit: The US recorded a $17.9 billion trade deficit with Indonesia in 2024, a 5.4% increase from 2023.
5. “Reciprocal” Duties: Trump’s “reciprocal” customs duties, initially announced at a higher rate, were paused but a 10% floor rate remained.
6. Goal of 90 Agreements: During a 90-day pause (extended to August 1st), the White House aimed to secure dozens of trade agreements.
7. Limited Success: So far, only agreements with the UK and Vietnam were announced, falling short of the White House’s target of up to 90.
8. Broader Threat: Around twenty countries received letters from the White House announcing potential customs duties ranging from 20% to 50% (for Brazil) starting August 1st.
9. EU-Indonesia agreement: Indonesia also signed a “political agreement” with the European Union to ease trade barriers, concluding negotiations that began in 2016.
10. “Breakthrough” for EU Deal: Indonesian President Prabowo called the EU agreement a “breakthrough” after 10 years of negotiations, aiming to open new markets and increase trade and investments.