NEW: Trump Announces Sweeping Trade Deal With Major Economy

President Donald Trump announced Tuesday that his administration had come to a new trade agreement with Indonesia, the world’s fourth most populous nation, after weeks of discussions.

“This morning I finalized an important Deal with the Republic of Indonesia after speaking with their Highly Respected President Prabowo Subianto. This landmark Deal opens up Indonesia’s ENTIRE MARKET to the United States for the first time in History,” the president announced in a Truth Social post.

As part of the agreement, the largest economy in Southeast Asia has agreed to purchase an additional $15 billion in U.S. energy exports, $4.5 billion in agricultural products, and 50 Boeing jets, the majority of them being of the 777 model. “For the first time ever, our Ranchers, Farmers, and Fishermen will have Complete and Total Access to the Indonesian Market of over 280 million people,” Trump wrote.

In addition, Indonesia has agreed to pay a 19 percent tariff on all goods they export to the U.S., while all U.S. exports to Indonesia will be exempt from tariffs and all previously existing non-tariff trade barriers.  “If there is any Transshipment from a higher Tariff Country, then that Tariff will be added on to the Tariff that Indonesia is paying,” the president added.

“Thank you to the People of Indonesia for your friendship and commitment to balancing our Trade Deficit. We will keep DELIVERING for the American People, and the People of Indonesia!”

Trump had previously levied 32 percent tariffs on Jakarta’s products as part of his “liberation day” tariffs aimed at rectifying trade deficits and imbalances with U.S. economic partners.

Indonesia is one of the United States’ top 25 trading partners, with the two nations trading more than $38 billion in goods in 2024, according to figures from the Commerce Department. The U.S. trade deficit with Indonesia totaled $17.9 billion last year.

“Indonesia is a leading emerging economy, often grouped with the CIVETS (Colombia, Indonesia, Vietnam, Egypt, Turkey, South Africa). It is the largest economy in Southeast Asia and ranks as the 7th largest economy globally by purchasing power parity (PPP), according to the OECD. Among emerging markets, it is typically within the top 10, with projections suggesting it could be the fourth largest economy globally by 2050, trailing only China, India and the United States

The deal with Indonesia closely mirrors his July 2 agreement with the government of Vietnam. “The Terms are that Vietnam will pay the United States a 20% Tariff on any and all goods sent into our Territory, and a 40% Tariff on any Transshipping,” the president announced, with the later statement referencing goods from other countries that ship through Vietnam.

“In return, Vietnam will do something that they have never done before, give the United States of America TOTAL ACCESS to their Markets for Trade. In other words, they will ‘OPEN THEIR MARKET TO THE UNITED STATES,’ meaning that, we will be able to sell our product into Vietnam at ZERO Tariff.”

Under a draft copy of the framework, the U.S. and Vietnam will work to “establish favorable rules of origin,” a reference to the estimated 40% of Vietnamese imports that are believed to originate from China. It also states that Vietnam will strengthen its enforcement over areas such as intellectual property theft.