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19 percent tariff announced on Indonesian products, what is expected to be purchased from the US in the agreement
The United States and Indonesia have reached a trade deal. Under the deal, Indonesia has pledged to buy a large amount of goods from the United States. Through this deal, Indonesia has been able to avoid high retaliatory tariffs from the United States.
19 percent tariff announced on Indonesian products, what is expected to be purchased from the US in the agreement
US President Donald Trump announced the deal on Tuesday local time.
Trump said that under the deal, a 19 percent tariff will be imposed on goods coming from Indonesia to the United States. He made this information known in a post on his own Truth Social.
According to the deal, those who send goods through other countries to evade tariffs through transshipment will be subject to higher tariffs.
Trump wrote that as part of the deal, Indonesia has agreed to buy $15 billion in fuel, $4.5 billion in agricultural products and 50 Boeing aircraft (mostly Boeing 777 models) from the United States.
In a separate post, Trump said that the deal with Indonesia would be great for everyone.
However, there was no significant change in the price of Boeing’s shares.
Last week, Trump threatened to impose a 32 percent tariff on Indonesian goods. At that time, Trump said that the tariff would take effect on August 1. However, in Tuesday’s announcement, he did not specify when the new 19 percent tariff would take effect.
The period within which the goods must be purchased under the deal has not yet been announced.
On the same day, Trump also said that he would soon inform smaller countries of the new tariff on them. The tariff will likely be a little more than 10 percent. The initial agreement with Vietnam is “almost final.”
However, the details of the Vietnam agreement have not yet been released. In particular, it is not clear which types of goods will be considered illegal transshipment and which 40 percent tariff will be imposed.
Trump said it was not important to reveal the details of the deal. But he was thinking about it.
“We have a deal with Vietnam and it’s almost final,” Trump told reporters at an air base in Maryland.
The Trump administration is under pressure to quickly reach more trade deals, as many countries have recently sought to negotiate with the United States to avoid retaliatory tariffs.
