President Donald Trump said Tuesday that the United States has finalized a trade pact with Indonesia that includes significant purchase commitments, following weeks of negotiations aimed at avoiding steeper U.S. tariffs on imports from the Southeast Asian country.
In a post on his Truth Social platform, Trump said Indonesian goods entering the U.S. would now face a 19 percent tariff — substantially lower than the 32 percent rate he had previously threatened.
"As part of the Agreement, Indonesia has committed to purchasing $15 Billion Dollars in US Energy, $4.5 Billion Dollars in American Agricultural Products, and 50 Boeing Jets, many of them 777's," Trump wrote.
Boeing shares rose 0.9% following the announcement.
In a separate post earlier Tuesday, Trump described the agreement as a "great deal, for everybody."
The new trade pact comes as the Trump administration faces mounting pressure to deliver on its promises of securing multiple trade agreements. Countries around the world have been seeking negotiations with Washington to avoid the White House’s escalating tariff threats.
So far, the president has announced trade deals with Britain and Vietnam, along with a temporary reduction in reciprocal tariffs with China.
Last week, Trump renewed his threat to impose a 32 percent tariff on Indonesian imports, saying in a letter to the Indonesian government that the rate would take effect on August 1.
It remains unclear when the newly announced 19 percent tariff will be implemented, or over what timeframe Indonesia will fulfill its purchase commitments outlined in the deal.
Trump said on social media that the deal was finalized after speaking with Indonesian President Prabowo Subianto, and added that products rerouted to avoid higher tariffs — a process known as transshipment — would now face steeper penalties.
He also told reporters Tuesday that further trade deals are in progress, including with India, while negotiations with the European Union are ongoing.
Indonesia's former vice minister for foreign affairs, Dino Patti Djalal, speaking at a Foreign Policy event Tuesday, said government insiders had expressed satisfaction with the new agreement.
Trump first introduced a 10 percent tariff on imports from nearly all trading partners in April, vowing to increase the rates over time unless new trade terms were secured.
The steeper duties were originally scheduled to take effect July 9 but were postponed twice, most recently to August 1. Since early July, Trump has sent more than 20 letters to foreign governments, outlining tariff levels they would face next month unless agreements were reached.
Recipients include the European Union, Japan, South Korea, and Malaysia. Even Canada and Mexico — both previously exempt from the tariff campaign under a North American trade pact — have received similar communications, although existing exemptions are expected to remain in place, a U.S. official said.
The Trump administration has said its aggressive tariff strategy is aimed at correcting what it views as unfair trade practices that disadvantage American companies. But critics argue that the tariffs may inflict economic pain without clear gains.
"In the public's mind, the tariffs are the pain, and the agreements will be the gain. If there are no agreements, people will conclude his strategy was flawed," said William Reinsch, senior adviser at the Center for Strategic and International Studies.