Trump Tariffs Deal Struck With Indonesia
Indonesia has become the latest country to agree a trade deal with US President Donald Trump. This breakthrough is the first since the first tranche of letters detailing individual Trump tariffs levels was issued.
Further Reading: Trump Tariffs Letters Issued
Background
Indonesia’s total trade with the United States — totalling 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% last year, while imports from Indonesia were up 4.8%, leaving the U.S. with a goods trade deficit of nearly $18 billion. Trump had threatened the southeast Asian country with a 32% tariff rate effective August 1 in a letter sent to its president last week.
Details
The deal sees a flat 19 per cent tariffs applied on Indonesian exports to the United States, while American exports to the ASEAN country would be “Tariff and Non Tariff Barrier free”. Trump later explain on his Truth Social platform that “if there is any transshipment from a higher tariff Country, then that tariff will be added on to the tariff that Indonesia is paying.” This is unlike Vietnam’s deal, which has a flat 40% tariff on all transshipped goods.
Further Reading: US, Vietnam Reach Trade Deal
As part of the Agreement, Indonesia has committed to purchasing $15 Billion Dollars in U.S. Energy, $4.5 Billion Dollars in American Agricultural Products, and 50 Boeing Jets.
Mr 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 US and Indonesia that will explain the size of reciprocal tariff for Indonesia including the tariff deal, non-tariff and commercial arrangements. We will inform (the public) soon.”
Impact
This provision opens Indonesia’s market of over 280 million people to U.S. businesses. Indonesia’s promised large purchases of energy, agriculture, and aircraft will also drive a substantial increase in specialized freight volume.
These new rules directly affect your supply chain operations. U.S. companies looking to capitalize on tariff-free access to Indonesia must now optimize their logistics for efficient market entry. Meanwhile, Indonesian exporters and U.S. importers will face the new 19% tariff, which necessitates precise customs declarations and careful cost planning.
Freight Forwarding
Despite striking a deal, the road to and from Indonesia is still fraught with challenges. Navigating the complex hurdles alone may result in delays or even financial penalties. This is where a freight forwarder provides critical value. As expert logistics managers, they help you connect these separate parts seamlessly.
Further Reading: How to Choose the Right Freight Forwarder for USA–ASEAN Shipping
Customs Clearance
Freight forwarders provide expert customs clearance services. This ensures seamless compliance with the new 19% import tariff and optimizes declarations for U.S. exports. By working with freight forwarders, businesses can minimize the risk of costly delays or penalties.
Service Coverage
An experienced freight forwarder services all types of cargo. This includes bulk shipping, LCL consolidation, as well as the notoriously stringent refrigerated trucking and dangerous goods shipping.
Network
Freight forwarders work with a plethora of service providers to help make sure your goods get delivered safely and punctually. Express Freight Management, for example, has extensive experience in Southeast Asia. This not only includes Indonesia, but also the neighboring Singapore, Malaysia, and more. Such partnerships allow them to handle anticipated increased volumes and meet the specific requirements of these crucial trade lanes.
All-In-One Solution
Freight forwarders don’t only ship. Express Freight Management goes one step beyond the standard air freight and sea freight services. As part of their comprehensive door to door shipping solutions, they can also manage warehousing, cargo insurance and more. This is especially important for businesses looking to expand into Indonesia for the first time.
Conclusion
The U.S.-Indonesia trade agreement marks a significant shift in global commerce. Partnering with an experienced freight management firm like Express Freight Management is essential for adapting your logistics strategy. We ensure your goods move effectively and compliantly under these new terms. Contact us today to discuss your specific shipping needs.
For nearly two decades, Express Freight Management has been the trusted partner for businesses shipping between the United States and Southeast Asia. We handle the technological complexity for you, managing everything from carrier selection and customs clearance to warehousing. Discover a streamlined approach to logistics with Express Freight Management for your shipping needs between the United States and Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam today!
