ECONOMYNEXT – US President Donald Trump has announced a 19 percent tariff deal with Indonesia days after sending a 32 percent letter, saying the country has ‘opened up’ to American imports and has committed to buy energy. food and aircraft.
Indonesia received a 32 percent tariff letter from Trump earlier on July 07, the same level as April, as Sri Lanka got a 30 percent one, down from 44 percent in April.
Indonesia is the first country to which Trump has announced a fresh deal after sending a tariff letter.
“This landmark Deal opens up Indonesia’s ENTIRE MARKET to the United States for the first time in History,” President Trump said in a post on his Truthsocial.com platform.
“As part of the Agreement, Indonesia has committed to purchasing $15 Billion Dollars in U.S. Energy, $4.5 Billion Dollars in American Agricultural Products, and 50 Boeing Jets, many of them 777’s.
“For the first time ever, our Ranchers, Farmers, and Fishermen will have Complete and Total Access to the Indonesian Market of over 280 million people.
“In addition, Indonesia will pay the United States a 19% Tariff on all Goods they export to us, while U.S. Exports to Indonesia are to be Tariff and Non Tariff Barrier FREE.”
Trump’s letter implies that American goods will be imported by Indonesia free of tariff.
A team from Sri Lanka will leave to the US on April 18 for more negotiations, Foreign Minister Vijitha Herath told reporters Tuesday, with an aim to reduce tariffs before an August 01 deadline when a reduced 30 percent rate is to go into effect.
Negotiations on a bilateral trade agreement has already been initiated, he said.
Sri Lanka is continuing to negotiate with the US to bring down its tariff cabinet spokesman Nalinda Jayatissa also said Tuesday. He declined to reveal whether the target is 20 percent or what Sri Lanka will offer the US in return.
Trump has already announced a 20 percent deal with Vietnam. Vietnam had a 123 billion US dollar trade deficit with America.
Indonesia only had a 19.4 billion deficit with the US last year.
