A tentative trade deal between the US and Indonesia has eased immediate concerns over a sharp tariff hike on Indonesian exports.
According to Reuters, the deal reduces the proposed US tariff on Indonesian exports from 32 per cent to 19 per cent.
In return, the US will retain zero tariffs on its exports to Indonesia, with Jakarta agreeing to purchase $15 billion in American energy products, $4.5 billion in agricultural goods, and 50 Boeing aircraft.
The agreement was initially revealed via a Truth Social post by President Donald Trump.
Lars Jensen, CEO of Vespucci Maritime, noted: “Trump claims there is now a trade deal between US and Indonesia including zero tariffs on US exports to Indonesia and 19 per cent tariffs on Indonesian exports to US.
“However, as has become a pattern when Trump announces trade deals with other countries, this deal is presently not confirmed by the Indonesian government and there are no details apart from a posting on Truth Social as well as no officially signed documents.”
That lack of clarity raised immediate concerns among shipping interests, already dealing with volatility in regional routing.
However, shortly after Trump’s post, Indonesian President Prabowo Subianto issued a statement saying: “Together, we agreed and concluded to take trade relations between Indonesia and the US into a new era of mutual benefit,” as reported by BBC News.
A critical element of the deal is the clause penalising goods transshipped from China via Indonesia.
Carriers and forwarders operating through key Indonesian ports such as Tanjung Priok, Belawan and Surabaya may face tighter origin checks and potential rerouting.
Jensen added: “The previously announced trade deal with Vietnam still lacks any real confirmation and is scarce on details. Not exactly reassuring for shippers trying to plan their supply chains.”
Trump also threatened 100 per cent tariffs on Russia and its partners if no Ukraine peace deal emerges within 50 days.
Similar threats were made in May regarding Iranian oil, yet no sanctions were enacted.
President Donald Trump recently announced a 50 per cent tariff on all Brazilian imports, effective 1 August, citing a politically motivated “witch hunt” against Bolsonaro over an alleged coup attempt.
