Pres. Trump on Truth Social announces the details of a trade agreement with the Republic of Indonesia.
19% tariff on all products coming into the US.Open market to American industrial and tech products and agricultural goods by eliminating 99% of their tariff barriersIndonesia will supply the United States with their precious critical materialsWill sign BIG DEALS, worth tens of billions of dollars, to purchase Boeing aircraft, American farm products, and American energy. Calls the deal a HUGE WIN for automakers, tech companies, workers, farmers, ranchers, manufacturers.Indonesia will except US federal safety standards for vehicles exported from the US.Goods that are transhipped will still face a tariff of tariff of 40%Indonesia will remove three shipment inspection requirements of the US. Products that been a big obstacleThey will drop it efforts to tariff the Internet, and immediately that renewal of e-commerce moratorium at the WTO
Although the US treasury will receive 19% on all imported goods, the question is who will pay the tariffs? The importer? WIll Indonesia discount goods or will the US consumer be forced to pay the 19% tax?
Whoever it is, importers will first be paying a 19% tariff on all imported Indonesian goods into the US. Trump loves those Tariff Dollars.
U.S.–Indonesia Net Trade Overview (2024–2025):
U.S. goods exports to Indonesia: $10.2 billion
U.S. goods imports from Indonesia: $28.1 billion
Net trade balance: –$17.9 billion (U.S. trade deficit)
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This article was written by Greg Michalowski at investinglive.com.