US–Indonesia Trade Deal Cuts Tariffs to 19% and Secures Palm Oil Exemption
- brg_news_room
- Feb 26
- 1 min read
Indonesia: Indonesia and the United States finalized a trade deal on Thursday reducing US levies on Indonesian goods to 19% from 32%, with exemptions for palm oil accounting for about 9% of Indonesia’s exports as well as coffee, cocoa, rubber and spices. The agreement was signed in Washington by Airlangga Hartarto and Jamieson Greer after months of negotiations. The 19% rate aligns with US deals with Malaysia, Cambodia, Thailand and Philippines, while Vietnam faces 20% tariffs. The deal follows market challenges including warnings from MSCI and an outlook cut by Moody’s, though CSIS Indonesia’s Yose Rizal Damuri said it could boost investor confidence. Indonesia will remove tariff barriers on most US products, adopt US standards and restrict excess mineral production linked to concerns about China, while the agreement, signed by Prabowo Subianto and Donald Trump is set to take effect in 90 days, alongside USD 38.4 billion in business deals signed earlier this week.
Source: Reuters
