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U.S. and Indonesia Seal Reciprocal Trade Deal Setting 19% Tariff and Scrapping Duties on Most U.S. Exports

The accord sets a 90-day path to effectiveness following domestic steps.

Overview

  • Indonesia will remove non-tariff barriers and accept U.S. standards for vehicles, medical products, and digital trade, including ending pre‑shipment requirements and supporting a WTO moratorium on electronic transmission duties.
  • Palm oil plus coffee, cocoa, rubber, and spices from Indonesia will be tariff‑free, with a zero‑duty textile quota to be set based on use of U.S. cotton and man‑made fiber inputs.
  • Governments cited about $33 billion in planned U.S. energy, agriculture, and aerospace purchases tied to the pact, while companies announced $38.4 billion in separate commercial agreements.
  • Critical‑minerals cooperation deepened through a Freeport‑McMoRan memorandum to extend and expand operations in Indonesia’s Grasberg district.
  • The agreement was signed in Washington by the leaders and trade chiefs and includes mechanisms for later adjustments by mutual consent after it enters into force.