Trump Plans 19% Tariff On Indonesian Exports To U.S.

President Trump’s administration has released new details on a pact with Indonesia, confirming plans for a 19% tariff on the country’s exports and a 40% rate on any “transshipped” goods, Ben Werschkul reported for Yahoo Finance.

Indonesia has reportedly agreed to eliminate tariffs on over 99% of its imports from the US. I Photo: ANTARA FOTO / Eric Ireng TERMINAL PETIKEMAS SURABAYA

The framework further clarifies a deal that will avert the previously threatened 32% tariffs.

A senior White House official said that Indonesia has agreed to eliminate tariffs on over 99% of its imports from the US.

The agreement also includes the removal of non-tariff barriers that the US says hinder American businesses — including pre-shipment inspection requirements, vehicle standards, and rules affecting US-made medical devices and pharmaceuticals.

The definition of "transshipped goods" — a major point of contention — has now been clarified to include products not only re-labeled but also those made with a significant share of components from a third country and assembled in Indonesia.

This clause mirrors a similar provision in a recent deal with Vietnam and is clearly aimed at curbing indirect trade with China.

While Indonesian negotiators had previously confirmed the existence of a deal, not all details were disclosed. A spokesperson for Indonesia’s president told Reuters that the negotiations had been “an extraordinary struggle.”