In October 2025, the U.S. and Indonesia finalized a reciprocal tariff agreement after months of negotiation. The deal lowers the U.S. import tariff on Indonesian goods from 32% to 19% and includes exemptions for Indonesian palm oil, cocoa, and chocolate from tariffs. In exchange, Indonesia agreed to purchase a substantial amount of U.S. agricultural products, aircraft, and energy.
Key components of the deal
Tariff adjustments: The U.S. reduced its import tariff on Indonesian goods from an initial 32% to 19%., while exemptions were created for Indonesian agricultural products like palm oil, cocoa, and chocolate.
U.S.
purchases: Indonesia committed to purchasing a significant amount of U.S.
goods, including $4.5 billion in agricultural products,
$3.2
billion in aircraft, and $15 billion in energy products.
Trade expansion: The agreement grants U.S. businesses expanded market access to Indonesia, with the potential elimination of tariff barriers on over 99% of U.S. products and exemptions from import licensing requirements for U.S. agricultural goods.
Other provisions: The agreement also includes provisions for U.S. remanufactured goods, pre-shipment inspections, and ensures transparency and fairness for U.S. geographical indications.
How the deal was reached
The
initial tariff on Indonesian goods was set to 32%
but
was reduced to 19% after negotiations between the two countries.
The final deal was finalized after approvals from both the U.S. and Indonesian presidents.
The deal was one of several trade agreements reached in October 2025 between the U.S. and Southeast Asian countries, which together account for about 68% of U.S. two-way trade with the Association of Southeast Asian Nations.
https://www.google.com/search?q=us+deal+with+indonesia+octoger+2025
Norb Leahy, Dunwoody GA Tea Party Leader
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