US and Indonesia finalise deal to cut tariffs to 19%

Washington will set a 19% tariff on most Indonesian goods in exchange for lower trade barriers for US goods

The US and Indonesia finalized a trade deal to reduce US tariffs on Indonesian goods to 19% from 32%. In return, Indonesia will remove trade barriers on more than 99% of US imports and facilitate over $30 billion in purchases of American goods.

Indonesia has agreed to several policy changes, including removing local content requirements and a critical mineral export ban, to secure a 19% import tariff to the United States in a recently signed deal.

Indonesia and the United States have signed an agreement on reciprocal trade, with Washington maintaining the 19% tariff it had previously agreed for goods exported by the Southeast Asian country, Indonesia said on Friday.