Trump Secures Trade Agreement with Indonesia Amidst Tension**

The newly announced trade agreement between the U.S. and Indonesia aims to eliminate tariffs on U.S. exports, while placing a 19% tariff on Indonesian goods, following a series of negotiations and threats from the Trump administration.**

President Trump announced on Tuesday that he has finalized a new trade agreement with Indonesia, claiming it to be a “great deal for everybody” in a message shared on social media. The deal was confirmed by Indonesia's President Prabowo Subianto, who praised the agreement coming after extensive negotiations. According to the terms, U.S. exports will enter Indonesia tariff-free, while Indonesian goods specifically heading to the U.S. will incur a 19% tariff.

In his statement, President Trump emphasized the importance of the agreement, highlighting how it meets the interests of both parties. “After tough negotiations, we finally reached an agreement,” Prabowo noted during a press conference in Jakarta. This announcement follows a turbulent period during which the Trump administration threatened over two dozen countries with significantly high tariffs starting August 1, and specifically directly targeted Indonesia with a proposed 32% tax on its exports just last week.

U.S. and Indonesian officials have engaged in trade discussions over the past several months, aiming for a resolution amidst rising tensions and protectionist measures. Indonesian representatives expressed surprise when Trump publicly announced potential tariffs, as the negotiations had been proceeding positively.

Reflecting on the deal, Trump added that he envisions similar arrangements would be made with India, mentioning Indonesia’s wealth in natural resources, particularly high-quality copper, as an essential component of future collaboration.