President Donald Trump on Tuesday announced a trade deal with Indonesia, even as tensions with the European Union escalate over looming U.S. tariffs.
“Great deal, for everybody,” Trump posted on Truth Social, following direct talks with Indonesia’s president. While specific terms remain undisclosed, Indonesia’s government confirmed a forthcoming joint statement outlining reciprocal tariffs and commercial arrangements.
Indonesia, with bilateral trade just under $40 billion last year, is not among the U.S.’s largest partners. But the deal marks another push by the White House to reshape global trade terms in Washington’s favor. Commerce Secretary Howard Lutnick said the agreement mirrors the recent Vietnam pact—dropping tariffs on U.S. exports while raising duties on imports.
Trump had threatened a 32% tariff on Indonesian goods starting August 1. He has issued similar letters to other nations, proposing blanket tariffs up to 50%.
Meanwhile, the EU is preparing countermeasures if ongoing negotiations fail to avert Trump’s proposed 30% tariffs on EU and Mexican imports. Brussels has refrained from retaliating so far, but ministers signaled readiness to act should talks collapse.
With more than two dozen countries targeted by new tariffs, global trade tensions continue to mount—despite Trump’s intermittent signals of openness to deal-making.
