Indonesia and the United States have finalized a trade agreement that will cut U.S. reciprocal tariffs on Indonesian imports to 19 percent and exempt certain products from tariffs, the White House said on Feb. 19.
U.S. President Donald Trump had initially imposed a 32 percent reciprocal tariff on imports from Indonesia to address the trade deficit, which totaled $23.7 billion in 2025.
The White House said on Feb. 19 that the two nations have now secured a “great deal” that will strengthen their economic security and promote growth.
Under the agreement, the United States will allow certain textile and apparel imports from Indonesia made with U.S. cotton and man-made fiber textile inputs to enter tariff-free, according to a White House fact sheet.
In return, Indonesia agreed to remove tariff barriers on more than 99 percent of U.S. products, covering the agricultural, health, seafood, information and communications technology, automotive, and chemical sectors.
The nation also agreed to address nontariff barriers, including exempting U.S. goods from local content requirements and removing certification and labeling rules, and accepting U.S. standards for motor vehicle safety and emissions, medical devices, and pharmaceuticals.
Indonesia will also purchase about $33 billion of energy commodities, commercial aircraft and aviation-related goods, and agricultural products from the United States as part of the deal, according to the White House.
The trade deal was signed during Indonesian President Prabowo Subianto’s visit to Washington for the first leaders’ meeting of Trump’s Board of Peace.
“We have negotiated very intensively over the last few months, and I think we have reached solid understandings on many issues,” Prabowo told business executives at the U.S. Chamber of Commerce on Feb. 18.
U.S. Trade Representative Jamieson Greer said in a post on X that the deal will give U.S. agricultural and industrial companies access to Indonesia’s market of more than 280 million people.
Indonesian and U.S. companies also reached 11 deals this week worth $38.4 billion, including purchases of U.S. soybeans, corn, cotton, and wheat; cooperation on critical minerals and oil field recovery; and joint ventures in computer chips.
As part of the deal, Bangladesh agreed to provide “significant preferential market access” to U.S. industrial and agricultural goods, including chemicals, medical devices, machinery, motor vehicles and parts, information and communication technology equipment, energy products, soy, dairy, beef, poultry, tree nuts, and fruit, according to the White House.
