This article was originally published by The Epoch Times: Trump Announces Trade Deal With Indonesia
The US maintains a $17.9 billion items commerce deficit with Indonesia.
The US and Indonesia have reached a commerce settlement, President Donald Trump introduced on social media.
“Nice deal, for everyone, simply made with Indonesia. I dealt straight with their extremely revered President,” Trump mentioned in a July 15 post on Fact Social.
Trump instructed reporters shortly after that Indonesia can be subjected to a 19 p.c tariff. U.S. items, in the meantime, won’t be confronted with tariffs and may have full entry to the Indonesian market.
“You must perceive, we had no entry into any of those nations,” he mentioned. “Our folks couldn’t go in. And now we’re getting entry due to what we’re doing with the tariffs.”
This comes quickly after the president despatched a proper letter to Indonesia saying a 32 p.c levy on Indonesian items coming into the US, efficient Aug. 1.
Data from the U.S. Commerce Consultant’s Workplace signifies that the U.S. items commerce deficit with Indonesia was $17.9 billion in 2024, a 5.4 p.c improve from the earlier 12 months.
Indonesia’s fundamental exports to the US are shopper electronics, attire, and footwear.
Final week, he despatched out a batch of letters to greater than 20 U.S. commerce companions, together with Japan, South Korea, and Canada, outlining the tariff charges.
Much like his different letters, Trump knowledgeable Indonesian President Prabowo Subianto that his nation wouldn’t be topic to levies if it or its corporations constructed or manufactured merchandise in the US.
Based on the National Trade Estimate Report, launched shortly earlier than the president unveiled the contours of his tariff plans on April 2, Indonesia has maintained aggressive tariffs and non-monetary commerce obstacles.
U.S. commerce officers pointed to numerous restrictions, taxes, and public coverage devices that discriminate towards American corporations and merchandise.
In a follow-up Fact Social post, Trump mentioned Indonesia will buy $15 billion in U.S. vitality, $4.5 billion in agricultural items, and 50 Boeing jets.
“For the primary time ever, our ranchers, farmers, and fishermen may have full and complete entry to the Indonesian market of over 280 million folks,” the president added.
He additionally clarified that any transshipment from a higher-tariffed nation will likely be added to the tariff Indonesia pays.
Eyes on August
The deal is Trump’s fourth commerce settlement since his April 2 reciprocal tariffs announcement.
So far, the White Home has made offers with the UK, China, and Vietnam. Senior administration officers have reiterated that additional bulletins will likely be made by subsequent month.
The president not too long ago prolonged the deadline for reciprocal tariffs to Aug. 1, confirming on Fact Social that “no extensions will likely be granted.” This, Trump and others have mentioned, will enable the US to determine extra agreements.
Trump additionally signaled a extra lenient and versatile place, telling reporters on July 8 that commerce negotiations might occur over an prolonged interval.
“We will do issues through the years, too,” he mentioned. “We’re not hard-line.”
One other key date on the commerce entrance is Aug. 12, when the present U.S.–China tariff truce expires.
Nonetheless, Treasury Secretary Scott Bessent told Bloomberg Tv that the monetary markets shouldn’t fear.
Tech titan Nvidia announced on July 14 that the U.S. authorities would grant the chipmaker licenses to promote chips to China.
“Nvidia hopes to start out deliveries quickly,” the corporate mentioned in an announcement.
Now that the US and China have settled on tariffs and export controls, either side “can transfer on to the subsequent stage of talks,” Bessent says.
“I believe it’s essential for each the worldwide financial system, for the U.S. financial system, and for the Chinese language financial system, to maneuver on and discuss China opening its markets and rising the home and shopper manufacturing there,” he instructed the enterprise information community on July 15.
Watching Inflation
The buyer value index (CPI) report for June provided blended indicators for whether or not tariffs are fueling value pressures.
Final month, the annual inflation charge rose to 2.7 p.c from 2.4 p.c in Might. Month-to-month shopper costs rose by 0.3 p.c. Each figures had been according to economists’ expectations.
Annual core inflation, which excludes vitality and meals costs attributable to their volatility, rose to 2.9 p.c. Core CPI additionally edged up 0.2 p.c. These readings had been beneath consensus estimates.
“Whereas enterprise surveys report an enormous pickup in enter value inflation within the second quarter, CPI inflation was nonetheless comparatively nicely behaved in June,” Invoice Adams, chief economist at Comerica Financial institution, mentioned in a word emailed to The Epoch Occasions.
Companies is perhaps ready for extra readability on tariffs earlier than they reply, Adams famous. Slowing shopper demand might make corporations apprehensive about elevating costs, “forcing them to soak up tarifflation in the interim.”
In a July 14 interview with CNBC’s “Squawk Field,” Nationwide Financial Council Director Kevin Hassett shrugged off assertions that the president’s tariff insurance policies might revive inflationary pressures.
He advised that “patriotism” is displaying up within the financial information.
“My idea, as an economist, of why that’s, is that People, due to President Trump’s management, have acknowledged that once they purchase an American product, they not solely get maybe a greater product, definitely a greater product more often than not, however they’re additionally making their group stronger,” Hassett mentioned.
This week, the Bureau of Labor Statistics will launch commerce costs for June.
Final month, import costs remained flat at zero p.c, whereas export costs declined by 0.9 p.c.
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