Indonesia Faces 19% Tariffs, Agrees to Purchase 50 Boeing Planes in Trade Agreement with Trump – Tariff Implications

US President Donald Trump announced a trade agreement with Indonesia, which will see significant purchases from the Southeast Asian nation in an effort to avoid higher tariffs. According to Trump, this deal includes Indonesia’s commitment to buy $15 billion worth of US energy, $4.5 billion worth of US agricultural products, and 50 Boeing jets, many of which will be the 777 model. The Indonesian goods entering the United States will face a tariff of 19%, which is much lower than the 32% threatened by the US president earlier. This agreement follows his negotiations with Indonesian President Prabowo Subianto and comes as the Trump administration is under pressure to finalize trade deals to avoid the potential tariffs from the US. Previous threats of tariffs were earlier postponed by the American leader.

Source: https://www.theguardian.com/us-news/2025/jul/16/trump-says-indonesia-to-pay-19-tariffs-buy-50-boeing-jets-under-trade-deal