Trump sets 19% tariff on Indonesian goods in latest deal, EU readies retaliation

President Donald Trump on Tuesday said the United States would impose a 19 percent tariff on goods from Indonesia under a new agreement with the Southeast Asian country and said more deals were in the works as he continued to press for what he views as better terms with trading partners and a path to reducing a massive U.S. trade deficit.

The pact with the relatively minor U.S. trading partner is among the handful struck so far by the Trump administration ahead of an Aug. 1 deadline for tariffs on most U.S. imports to rise again, and it came as the top U.S. trading partner — the European Union — readied retaliatory measures should talks between Washington and its top trading partner fail. 

Indonesia's total trade with the United States — totaling just under $40 billion in 2024 — does not rank in the top 15, but it has been growing. U.S. exports to Indonesia rose 3.7 percent last year, while imports from there were up 4.8 percent, leaving the United States with a goods trade deficit of nearly $18 billion.

The top U.S. import categories from Indonesia, according to U.S. Census Bureau data retrieved on the International Trade Centre's TradeMap tool, last year were palm oil, electronics equipment including data routers and switches, footwear, car tires, natural rubber and frozen shrimp.

Susiwijono Moegiarso, a senior official with Indonesia's Coordinating Ministry for Economic Affairs, told Reuters in a text message: "We are preparing a joint statement between U.S. and Indonesia that will explain the size of reciprocal tariff for Indonesia including the tariff deal, nontariff and commercial arrangements. We will inform [the public] soon." 

Trump had threatened the country with a 32 percent tariff rate effective Aug. 1 in a letter sent to its president last week. He sent similar letters to roughly two dozen trading partners this month, including Canada, Japan and Brazil, setting blanket tariff rates ranging from 20 percent up to 50 percent, as well as a 50 percent tariff on copper.

The Aug. 1 deadline gives the targeted countries time to negotiate agreements that could lower the threatened tariffs. Some investors and economists have also noted Trump's pattern of backing off his tariff threats.

Since launching his tariff policy, Trump has clinched only a few deals despite his team touting an effort to bring home "90 deals in 90 days." So far, framework agreements have been reached with the United Kingdom and Vietnam, and an interim deal has been struck with China to forestall the steepest of Trump's tariffs while negotiations continue between Washington and Beijing.

Trump said talks with India were moving in a similar direction.

"India basically is working along that same line. We're going to have access to India. And you have to understand, we had no access into any of these countries. Our people couldn't go in. And now we're getting access because of what we're doing with the tariffs," he said.

The breakthrough with Indonesia came as the European Commission, which oversees trade for the EU, gets set to target 72 billion euros ($84.1 billion) worth of U.S. goods — from Boeing aircraft and bourbon whiskey to cars — for possible tariffs if trade talks with Washington fail.

Trump is threatening a 30 percent tariff on imports from the EU from Aug. 1, a level European officials say is unacceptable and would end normal trade between two of the world's largest markets.

The list, sent to EU member states and seen by Reuters on Tuesday, predates Trump's move over the weekend to ramp up pressure on the 27-nation bloc and responds instead to U.S. duties on cars and car parts and a 10 percent baseline tariff.

The package also covers chemicals, medical devices, electrical and precision equipment as well as agriculture and food products — a range of fruits and vegetables, along with wine, beer and spirits — valued at 6.35 billion euros.

Following a meeting of EU ministers in Brussels on Monday, officials said they were still seeking a deal to avoid Trump's heavy tariff blow.

But EU trade chief Maros Sefcovic said those at the meeting expressed unprecedented resolve to protect EU businesses using European countermeasures if negotiations with Washington fail to produce a deal.

Reuters