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View all search resultsIndonesia, US sign reciprocal tariff agreement
The accord sets a 19-percent tariff on Indonesian goods entering the United States. Jakarta is also to exempt US companies from local content requirements and address and prevent barriers to US agricultural products sold in Indonesia.
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Indonesia President Prabowo Subianto (left) and United States President Donald Trump (right) show the signed trade deal documents in Washington, US, on February 19, 2026, as witnessed by US Trade Representative Jamieson Greer. Indonesia and the US finalized the trade deal that locks in tariff rates and non-tariff barriers to commerce. (Office of the United States Trade Representative/-)
T
he United States and Indonesia finalized a trade deal that locks in tariff rates and non-tariff barriers to commerce, the White House announced Thursday.
Officials with the Indonesian government organized a news conference in a downtown Washington hotel to commemorate the signing of the reciprocal agreement, which was originally announced in July.
The accord sets a 19-percent tariff on Indonesian goods entering the United States. The Southeast Asian country of more than 280 million people had been threatened with a potential 32-percent levy prior to the agreement.
Jakarta is to exempt US companies from local content requirements and address and prevent barriers to US agricultural products sold in Indonesia, among other measures, according to a White House fact sheet.
Read also: Govt urged not to compromise too much for US trade deal
Indonesia also agreed to $33 billion in purchases of US energy commodities, agricultural products and aviation-related goods, including Boeing aircraft.
After alarming financial markets last spring with a plan for hefty tariffs, Trump has announced numerous accords, as well as a detente with China.
Trump on February 2 announced a trade deal to reduce tariffs on India. Earlier this week, he unveiled some $36 billion in commitments from Japan in US investments, part of a trade accord between Washington and Tokyo unveiled in July 2025.
Despite Trump's aggressive trade policy, the US trade deficit in goods expanded to a new record in 2025, government data showed Thursday.
The goods deficit stood at $1.24 trillion for all of last year, widening slightly from 2024's level to its biggest in Commerce Department figures dating back to 1960.
