ACHIEVING RECIPROCAL
TRADE: Today, the Trump Administration finalized a
landmark trade agreement with Indonesia that will provide Americans with
unprecedented market access and unlock major breakthroughs for America’s
manufacturing, agriculture, and digital sectors.
President
Donald J. Trump and Indonesian President Prabowo Subianto also signed a
document today confirming their strong commitment to implementing this
agreement.
Key
terms of the U.S.-Indonesia Agreement on Reciprocal Trade include:
Indonesia
will eliminate tariff barriers on over 99% of U.S. products exported to
Indonesia across all sectors, including for agricultural products, health
products, seafood, information and communications technology, automotive
products, and chemicals.
Indonesia
will address a range of non-tariff barriers, such as exempting U.S.
companies and originating goods from local content requirements,
accepting U.S. federal motor vehicle safety and emission standards,
accepting FDA standards for medical devices and pharmaceuticals, removing
burdensome certification and labeling requirements, eliminating
pre-shipment requirements, and taking steps to resolve many long-standing
intellectual property issues.
Indonesia
will address and prevent barriers to U.S. agricultural products being
sold in the Indonesian market, including by exempting food and
agricultural products from all of Indonesia’s import licensing regimes
and ensuring transparency and fairness with respect to geographical
indications, including meats and cheeses, and more.
Indonesia
has committed to eliminate barriers for digital trade, including
eliminating existing HTS tariff lines on “intangible products”;
supporting a permanent moratorium on customs duties on electronic
transmissions at the World Trade Organization immediately and without
conditions; and ensuring a level playing field for U.S. electronic
payment service companies.
Indonesia
has committed to join the Global Forum on Steel Excess Capacity and take
actions to address global excess capacity in the steel sector and its
impacts.
The
United States and Indonesia will cooperate to increase supply chain
resilience, address duty evasion, and ensure adequate export controls and
investment security. Indonesia will remove restrictions on exports to the
United States for all industrial commodities, including critical
minerals.
Indonesia
has committed to adopt and implement a forced labor import ban and remove
provisions from its labor laws that restrict workers and unions from
fully exercising freedom of association and collective bargaining rights.
The
United States and Indonesia commend the massive commercial deals reached
of approximately $33 billion worth of investment in agriculture,
aerospace, and energy in the United States – further increasing U.S.
exports to Indonesia. This includes:
Purchases
of approximately $15 billion of U.S. energy commodities.
Procurement
of commercial aircraft and aviation-related goods and services of
approximately $13.5 billion, including from Boeing.
Purchases
of over $4.5 billion of U.S. agricultural products.
Freeport-McMoRan
signed a Memorandum of Understanding with Indonesia to extend its mining
license and expand operations in the Grasberg minerals district, the
world’s second largest copper mine. This deal will generate an expected
$10 billion in annual revenue and will further strengthen U.S. supply
chains for critical minerals.
President
Trump has delivered a forward-looking, expansive trade deal in one of the
biggest markets in Southeast Asia, benefitting American workers,
exporters, farmers, and digital innovators.
THE PROSPEROUS PATH
FORWARD: In the coming weeks, the United States and
Indonesia will undertake applicable domestic procedures to make the Agreement
effective.
The
United States will maintain a 19% reciprocal tariff rate for imports from
Indonesia, except for certain identified products which will receive a 0%
reciprocal tariff rate.
The
United States committed to establish a mechanism allowing certain textile
and apparel goods from Indonesia to receive a 0% reciprocal tariff rate
for a to-be-specified volume of apparel and textile imports. This volume
will be determined in relation to the quantity of exports of textiles
produced from American cotton and man-made fiber textile inputs from the
United States.
The
United States may positively consider the effect that the Agreement has on
national security, including taking the Agreement into consideration when
taking trade action under section 232 of the Trade Expansion Act of 1962,
as amended (19 U.S.C. 1862).
The
United States currently runs its 15th largest goods trade
deficit with Indonesia.
The
U.S. total goods trade deficit with Indonesia was $23.7 billion in 2025.
Before
this deal, Indonesia’s simple average applied tariff was 8% while the
U.S. average applied tariff was 3.3%.
LIBERATING AMERICA FROM UNFAIR
TRADE PRACTICES: President Trump has challenged the
assumption that American workers and businesses must tolerate unfair trade
practices that have disadvantaged them for decades and contributed to our
historic global trade deficit.
On
April 2, 2025, President Trump declared a national emergency in response
to the large and persistent U.S. goods trade deficit caused by a lack of
reciprocity in our bilateral trade relationships, unfair tariff and
non-tariff barriers, and U.S. trading partners’ economic policies that
suppress domestic wages and consumption.
President
Trump continues to advance the interests of the American people by
removing tariff and non-tariff barriers and expanding market access for
American exporters.
The
United States has reached trade agreements with major U.S. trading
partners covering more than half of global GDP.
Today’s
announcement shows that America can defend its domestic production and
strengthen its defense industrial base while obtaining expansive market access
with our trading partners
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February 22, 2026
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