Trump claims to have reached an agreement with Indonesia, and the U.S. will impose a 19% tariff, lower than last week's threat level

Following the UK and Vietnam, U.S. President Trump has announced an agreement with trade partners. Indonesia will eliminate tariffs on goods imported from the U.S. and purchase over $10 billion worth of U.S. goods, while the U.S. will impose tariffs on Indonesia that are lower than the levels Trump threatened last week.

On July 15th, Tuesday, Eastern Time, according to Xinhua News Agency, Trump announced on the social media platform "Truth Social" that the U.S. will impose a 19% tariff on all imported Indonesian goods, while U.S. exports to Indonesia will enjoy tariff-free and non-tariff barrier treatment.

Reports indicate that Trump stated he reached an important agreement after talks with Indonesian President Joko Widodo. Under this "landmark agreement," Indonesia "opens its entire market to the U.S. for the first time." He added that as part of the agreement, Indonesia committed to purchasing $15 billion worth of U.S. energy, $4.5 billion worth of U.S. agricultural products, and 50 Boeing aircraft.

Trump mentioned that many of the aforementioned Boeing aircraft are Boeing 777 passenger planes. If any goods from countries with higher tariffs imposed by the U.S. are transshipped through Indonesia, the tariffs imposed by the U.S. on those countries will be added to the 19% tariff imposed on Indonesia.

Earlier on Tuesday, Trump revealed on social media that a "fantastic agreement for everyone" was reached with Indonesia, which was achieved after his direct communication with Widodo. Later, Trump stated at the White House that the U.S. has reached an agreement with Indonesia to impose a 19% tariff on Indonesian goods, while U.S. goods will gain "full access" to the Indonesian market without tariffs. Trump said Indonesia has some great products and also mentioned that the U.S. will continue to impose tariffs on Brazil.

If the officially announced agreement text aligns with what Trump stated, it means that through this agreement, the U.S. tariffs faced by Indonesia will be lower than the tariff levels Trump threatened last week. According to Xinhua News Agency, Trump stated last Monday that starting August 1, tariffs ranging from 25% to 40% will be imposed on imported products from 14 countries, including Japan and South Korea. According to a letter released by Trump, Indonesia will be subject to a 32% tariff.

After Trump announced the agreement and the new tariff levels for Indonesia during the U.S. stock market's midday session, the Indonesia ETF, the VanEck MSCI Indonesia ETF (EIDO), saw its intraday gains expand to nearly 0.5%. The U.S. stock market's late session saw it refresh its daily high with gains exceeding 0.8%, ultimately closing up about 0.5%, rebounding after a decline on Monday, and no longer falling away from the closing high set on June 18.

However, the declines in the two major U.S. stock indices, the S&P 500 and the Dow Jones, did not ease but rather expanded. When refreshing the daily low in the late session, the S&P fell over 0.4%, and the Dow dropped nearly 460 points, with a decline slightly exceeding 1%. The Nasdaq, supported by tech stocks like Nvidia, saw its gains narrow, closing up nearly 0.2%

Boeing briefly turned positive during midday trading, reaching a daily high with an intraday increase of over 1.3%, but slightly turned negative towards the end of trading, closing down over 0.2%.

Trump has announced tariffs to 24 countries and the EU, with new tariffs up to 50% starting August 1

Indonesia is one of the top 25 trading partners of the United States and a major copper producer globally. According to the U.S. Department of Commerce, in 2024, the trade volume between the U.S. and Indonesia exceeded $38 billion. Last year, the U.S. trade deficit with Indonesia totaled $17.9 billion.

Trump stated on Tuesday that Indonesia's copper resources are "very abundant." It remains unclear how the agreement between the U.S. and Indonesia will affect U.S. copper tariffs. According to Xinhua News Agency, on July 9, Trump announced that starting August 1, a 50% tariff would be imposed on all copper imported into the U.S.

A 19% tariff means that among the more than 20 U.S. trading partners that received Trump's tariff letters over the past week, Indonesia will face the lowest tariff. Indonesia became the first trading partner to lower tariffs through a trade agreement after receiving a threat of tariffs.

Xinhua reported that according to the letter released by Trump last Monday, Japan, South Korea, Malaysia, Tunisia, Kazakhstan will face a 25% tariff, South Africa and Bosnia and Herzegovina will face a 30% tariff, Indonesia will face a 32% tariff, Serbia and Bangladesh will face a 35% tariff, Thailand and Cambodia will face a 36% tariff, while Laos and Myanmar will face tariffs as high as 40%.

According to Xinhua, in these nearly identical letters, Trump warned the leaders of the recipient countries that if they wish to raise tariffs in response, the U.S. will impose an equal amount of additional tariffs on top of the current rates. Additionally, if these countries or their companies decide to produce products within the U.S., they will not be subject to tariffs. If the relevant countries open their domestic markets to the U.S. while eliminating tariff and non-tariff trade barriers, then, "we may adjust the contents of this letter, and the relevant tariff rates can be adjusted upwards or downwards, depending on the relationship between our countries."

On July 9, Trump’s second wave of tariff letters arrived, covering eight countries, with the tariff for Brazil being the highest level since the announcement of new reciprocal tariffs.

Last Wednesday during U.S. stock trading, according to CCTV News, Trump posted letters to Brunei, Algeria, Moldova, Iraq, the Philippines, and Libya on social media platforms Trump stated that the United States will impose a 25% tariff on products from Brunei and Moldova starting August 1, 2025, a 30% tariff on products from Algeria, Iraq, and Libya, and a 20% tariff on products from the Philippines.

Last Wednesday after the U.S. stock market closed, according to CCTV News, Trump posted a letter to Brazil regarding the tariff increase on the social media platform "Truth Social," stating that the United States will impose a 50% tariff on all Brazilian products starting August 1, 2025.

On July 10, last Thursday, according to CCTV, Trump announced that starting August 1, a 35% tariff will be imposed on goods imported from Canada. Trump also stated that he plans to impose a uniform tariff of 15% or 20% on countries that have not yet received tariff letters.

According to Xinhua News Agency, Trump announced on Saturday, the 12th, that starting August 1, a 30% tariff will be imposed on goods imported from the European Union and Mexico