Trump claims tariff deal with Indonesia

U.S. President Donald Trump said he has reached another tariff agreement – this time with Indonesia.

Trump said he has agreed to lower tariffs on threats to enter the U.S. goods from Indonesia in exchange for what he calls “full access” of U.S. companies.

The Southeast Asian country did not immediately confirm the terms of the deal, which has a smaller but growing relationship with the United States.

The agreement is latest after the White House announced a series of tariffs this spring and began a series of trade talks on responsibilities.

Trump updated the threat this month, sending warning letters to dozens of countries that he intends to collect high tariffs starting August 1 after suspending the most radical tariff plans earlier this year.

His targets include all of the largest trading partners of the United States, including the EU, Canada, Mexico, Japan and South Korea.

Indonesia also received a letter from Trump last week outlining its 32% tariff plan for goods, and people reportedly confused that they believe the agreement has been completed.

Trump said on Tuesday he lowered the rate after calling with the Indonesian president.

As part of the deal, Indonesia has agreed to lower its trade tariffs on U.S. products, he said. complain Many agricultural products, as well as certain manufactured commodities, are high.

“They will pay 19% of the fee and we will not pay … we will be fully in Indonesia,” he said.

The country also agreed to buy $15 billion worth of U.S. energy, $4.5 billion in U.S. agricultural products and 50 Boeing jets, later wrote on social media.

Those figures are lower than those outlined by Reuters in the trade deal reported earlier this month, which is expected to be signed.

Indonesia is one of the top 25 trading partners of the United States, sending about $28 billion to the United States last year, including clothing, footwear and palm oil.

Stephen Marks, an economics professor at Pomona College in California, said the deal’s benefits for Indonesia are “more political” than economics.

“certainly, [the US does] “There are some of the main import categories from Indonesia – elections, clothing, footwear, palm oil products, used in cosmetics,” he said.

“Relative to total trade, the United States is an important importer of Indonesia, although not as large as some of its Asian trading partners.”

In addition to Indonesia, the government has also announced agreements with the United Kingdom, China and Vietnam. In these three cases, these transactions brought high U.S. tariffs to the point, with key issues and clauses unproven or unresolved.

Everett Eissenstat, a partner at Squire Patton Boggs, who worked as an economic adviser during the first Trump administration, said he hopes the White House will launch more deals in the coming weeks, while noting that many countries seem to have lowered expectations for what they hope to achieve.

He pointed Canadian Prime Minister Mark Carney’s latest comment on Tuesdaywhich increases the possibility that the country may accept tariffs at once unimaginable levels.

“The tone has changed a lot,” he said. He believes it’s better to reach an agreement than not having a deal.

“For the government, I think it’s better to be at the negotiating table than to walk away,” he added.