Trump unveils new trade deals with Indonesia, Philippines

United States President Donald Trump announced yesterday the finalisation of a “framework” trade agreement with Indonesia that he said will eliminate 99 percent of tariffs imposed on US exports to the island nation.

“It is agreed that Indonesia will be Open Market to American Industrial and Tech Products, and Agricultural Goods, by eliminating 99 percent of their Tariff Barriers.

“The United States of America will now sell American Made products to Indonesia at a Tariff Rate of ZERO, while Indonesia will pay 19 percent on all of their products coming into the U.S.A.,” Trump wrote on social media.

“In addition, Indonesia will supply the United States with their precious Critical Minerals, as well as sign BIG Deals, worth Tens of Billions of Dollars, to purchase Boeing Aircraft, American Farm products, and American Energy.

“This Deal is a HUGE WIN for our Automakers, Tech Companies, Workers, Farmers, Ranchers, and Manufacturers,” Trump added.

A senior Trump administration official described the agreement as a “framework” earlier yesterday, saying it “shows exactly how the president is resetting the terms of trade to ensure that we can reduce our deficit, both by regulating imports and also expanding exports.”

Besides eliminating nearly all tariffs on US exports to Indonesia, the agreement seeks to address “a range of non-tariff barriers” on agricultural and industrial US exports via exemptions on content requirements and licensing regimes, and other measures, the White House said in a statement.

The official who spoke to reporters on condition of anonymity said that some Indonesian exports would face trade duties above the 19 percent rate established in the agreement.

That includes goods that are shipped through Indonesia to US markets, or contain a lot of content from third-party nations, which will face a 40 percent tariff.

Several of the agreement’s provisions remain to be negotiated, however, including the removal of digital trade barriers and strengthening rules to ensure that the agreement’s benefits can only be reaped by Indonesia and the US rather than third-party countries.

The announcement comes just over a week before the US president’s Aug 1 deadline for nations to strike new trade agreements with Washington or face heightened tariffs. The original July 9 deadline was pushed back by the White House to give negotiators more time.

Peter Navarro, the US president’s trade adviser, said in April, shortly after Trump announced his tariff push, that the administration would seek to conclude “90 deals in 90 days”, but that goal has proved illusory.

Before the Indonesia announcement, only two nations, the UK and Vietnam, concluded interim trade deals with Trump.

A separate trade truce with China reduced some tariffs between the world’s top two economies.

Philippines deal

Meanwhile, Trump announced a new trade agreement with the Philippines following a meeting yesterday with President Ferdinand Marcos at the White House.

“It was a beautiful visit, and we concluded our Trade Deal, whereby The Philippines is going OPEN MARKET with the United States, and ZERO Tariffs. The Philippines will pay a 19 percent Tariff,” Trump wrote on Truth Social.

The US had announced a 20 percent tariff on Philippine exports, which was set to take effect Aug 1.

The two nations also agreed to continue military cooperation, said Trump.

The Philippines, a long-standing military ally of the US in the Asia-Pacific region, hosts American soldiers and provides access to its military bases. The two countries have maintained a mutual defence treaty since 1951.

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