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Details are still scarce on the agreement, which the president said will partly walk back some of the steep tariffs he threatened on the country last week.
By Ana Swanson and Alexandra Stevenson
Ana Swanson covers international trade and reports from Washington. Alexandra Stevenson reported from Jakarta, Indonesia.
July 16, 2025, 7:10 a.m. ET
President Trump said Tuesday that he had struck a trade agreement with Indonesia, calling it a “great deal for everybody” in a social media post.
Indonesia’s president, Prabowo Subianto, confirmed the broad outlines of the deal for the first time on Wednesday, in brief remarks in Jakarta. Under the terms, U.S. exports to Indonesia would face no tariffs, while Indonesian goods would be charged a tariff of 19 percent in the United States.
“After tough negotiations, we finally reached an agreement,” Mr. Prabowo said. “We understand their interests, and they understand ours.”
The announcement comes as the Trump administration is trying to close trade deals with numerous countries, and threatening to impose double-digit tariffs on the exports of two dozen nations as of Aug. 1 if agreements aren’t reached.
U.S. and Indonesian officials have been engaged in trade talks for several months. Last week, Mr. Trump threatened Indonesia with a 32 percent tariff on its exports in a letter posted to his social media account, as he sent similar form letters to dozens of countries. Indonesian officials said they were surprised to receive the letter, given that talks had been going well.
“I think it’s a good deal for both parties,” Mr. Trump said, while saying that a forthcoming deal with India would also follow similar lines. He added that Indonesia also had minerals and “very high-quality copper, which we’ll be using.”
