The United States and Indonesia have reached a trade agreement, which will impose a 19% tariff on Indonesia.

2026-02-20 04:13:45

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On February 19th local time, the White House announced that the Trump administration has officially finalized a reciprocal trade agreement with Indonesia aimed at expanding market access for American goods in sectors including manufacturing, agriculture, and the digital economy. President Donald Trump and Indonesian President Joko Widodo signed the documents on the same day, confirming that both sides will work to implement the relevant arrangements.

According to disclosures from the White House, Indonesia will eliminate tariffs on over 99% of U.S. exports. The two sides also confirmed an approximately $33 billion commercial cooperation arrangement, including about $15 billion in U.S. energy procurement, approximately $13.5 billion in aerospace and related products, and over $4.5 billion in U.S. agricultural product purchases.

Under the agreement, the U.S. will maintain a 19% reciprocal tariff rate on Indonesian goods, but some specific products will be subject to zero tariffs.

Data shows that the U.S. had a goods trade deficit of $23.7 billion with Indonesia in 2025. The White House stated that the agreement will officially take effect after the completion of each side’s domestic procedures in the coming weeks.

(Source: CCTV News App)

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