Trump Announces Trade Deal With Indonesia, Includes Major U.S. Energy, Agriculture Buys

The United States has struck a trade agreement with Indonesia that includes billions in purchase commitments and avoids the steep tariffs previously threatened by the White House, President Donald Trump announced Tuesday.

Speaking via his Truth Social platform, Trump said the new deal would impose a 19 percent tariff on Indonesian goods entering the U.S.—a lower rate than the 32 percent levy he had floated just last week.

“As part of the Agreement, Indonesia has committed to purchasing $15 Billion Dollars in US Energy, $4.5 Billion Dollars in American Agricultural Products, and 50 Boeing Jets, many of them 777’s,” Trump wrote.

The announcement follows a call between Trump and Indonesian President Prabowo Subianto, after which the deal was finalized. Trump celebrated the outcome, calling it a “great deal, for everybody.”

The agreement also takes aim at so-called transshipped goods—products routed through third countries to dodge higher tariffs. According to the administration, those goods will now face harsher penalties, though the exact rates and enforcement mechanisms weren’t disclosed.

Details on when the 19 percent tariff will take effect remain unclear, as does the timeline for Indonesia’s large-scale purchases of U.S. goods.

Despite the announcement, Boeing stock remained mostly flat on Tuesday.

Trump’s earlier threat to impose a 32 percent tariff on Indonesian imports was laid out in a letter to the country’s leadership and was set to kick in on August 1. The new agreement appears to have put that plan on hold—at least for now.

Separately on Tuesday, Trump said he would soon notify smaller countries of their new tariff rates, which he indicated would be “a little over 10 percent.” He also said a pending trade deal with Vietnam was “pretty well set,” although details remain limited.

“We have a Vietnam deal, and I would say that that deal is being pretty well set,” Trump told reporters at Joint Base Andrews.

Asked whether he would publish the terms of the agreement, Trump brushed off the question but said he’d “consider it.”

With input from Al Jazeera