ACHIEVING RECIPROCAL TRADE: Today, the Trump Administration finalized a landmark trade agreement with Indonesia that will provide Americans with unprecedented market access and unlock major breakthroughs for America’s manufacturing, agriculture, and digital sectors.
- President Donald J. Trump and Indonesian President Prabowo Subianto also signed a document today confirming their strong commitment to implementing this agreement.
- Key terms of the U.S.-Indonesia Agreement on Reciprocal Trade include:
- Indonesia will eliminate tariff barriers on over 99% of U.S. products exported to Indonesia across all sectors, including for agricultural products, health products, seafood, information and communications technology, automotive products, and chemicals.
- Indonesia will address a range of non-tariff barriers, such as exempting U.S. companies and originating goods from local content requirements, accepting U.S. federal motor vehicle safety and emission standards, accepting FDA standards for medical devices and pharmaceuticals, removing burdensome certification and labeling requirements, eliminating pre-shipment requirements, and taking steps to resolve many long-standing intellectual property issues.
- Indonesia will address and prevent barriers to U.S. agricultural products being sold in the Indonesian market, including by exempting food and agricultural products from all of Indonesia’s import licensing regimes and ensuring transparency and fairness with respect to geographical indications, including meats and cheeses, and more.
- Indonesia has committed to eliminate barriers for digital trade, including eliminating existing HTS tariff lines on “intangible products”; supporting a permanent moratorium on customs duties on electronic transmissions at the World Trade Organization immediately and without conditions; and ensuring a level playing field for U.S. electronic payment service companies.
- Indonesia has committed to join the Global Forum on Steel Excess Capacity and take actions to address global excess capacity in the steel sector and its impacts.
- The United States and Indonesia will cooperate to increase supply chain resilience, address duty evasion, and ensure adequate export controls and investment security. Indonesia will remove restrictions on exports to the United States for all industrial commodities, including critical minerals.
- Indonesia has committed to adopt and implement a forced labor import ban and remove provisions from its labor laws that restrict workers and unions from fully exercising freedom of association and collective bargaining rights.
- The United States and Indonesia commend the massive commercial deals reached of approximately $33 billion worth of investment in agriculture, aerospace, and energy in the United States – further increasing U.S. exports to Indonesia. This includes:
- Purchases of approximately $15 billion of U.S. energy commodities.
- Procurement of commercial aircraft and aviation-related goods and services of approximately $13.5 billion, including from Boeing.
- Purchases of over $4.5 billion of U.S. agricultural products.
- Freeport-McMoRan signed a Memorandum of Understanding with Indonesia to extend its mining license and expand operations in the Grasberg minerals district, the world’s second largest copper mine. This deal will generate an expected $10 billion in annual revenue and will further strengthen U.S. supply chains for critical minerals.
- President Trump has delivered a forward-looking, expansive trade deal in one of the biggest markets in Southeast Asia, benefitting American workers, exporters, farmers, and digital innovators.
THE PROSPEROUS PATH FORWARD: In the coming weeks, the United States and Indonesia will undertake applicable domestic procedures to make the Agreement effective.
- The United States will maintain a 19% reciprocal tariff rate for imports from Indonesia, except for certain identified products which will receive a 0% reciprocal tariff rate.
- The United States committed to establish a mechanism allowing certain textile and apparel goods from Indonesia to receive a 0% reciprocal tariff rate for a to-be-specified volume of apparel and textile imports. This volume will be determined in relation to the quantity of exports of textiles produced from American cotton and man-made fiber textile inputs from the United States.
- The United States may positively consider the effect that the Agreement has on national security, including taking the Agreement into consideration when taking trade action under section 232 of the Trade Expansion Act of 1962, as amended (19 U.S.C. 1862).
- The United States currently runs its 15th largest goods trade deficit with Indonesia.
- The U.S. total goods trade deficit with Indonesia was $23.7 billion in 2025.
- Before this deal, Indonesia’s simple average applied tariff was 8% while the U.S. average applied tariff was 3.3%.
LIBERATING AMERICA FROM UNFAIR TRADE PRACTICES: President Trump has challenged the assumption that American workers and businesses must tolerate unfair trade practices that have disadvantaged them for decades and contributed to our historic global trade deficit.
- On April 2, 2025, President Trump declared a national emergency in response to the large and persistent U.S. goods trade deficit caused by a lack of reciprocity in our bilateral trade relationships, unfair tariff and non-tariff barriers, and U.S. trading partners’ economic policies that suppress domestic wages and consumption.
- President Trump continues to advance the interests of the American people by removing tariff and non-tariff barriers and expanding market access for American exporters.
- The United States has reached trade agreements with major U.S. trading partners covering more than half of global GDP.
- Today’s announcement shows that America can defend its domestic production and strengthen its defense industrial base while obtaining expansive market access with our trading partners.