TRUMP-PRABOWO TRADE DEAL UNVEILED AS TARIFFS REDUCED FROM U.S. GAINS MARKET ACCESS

In a surprising turn, U.S. President Trump and Indonesian President Prabowo Subianto announced an agreement to ease tariff tensions after Trump threatened 32 % import duties on Indonesian goods. Instead, Indonesia will pay only 19 %, while granting U.S. firms “full market access,” including purchases of $15 billion in American energy, $4.5 billion in agricultural products, and 50 Boeing aircraft.
Trump hailed the deal as evidence of his tough negotiating strategy paying off. Indonesia’s economy minister praised the agreement as ushering in a “new era of mutual benefit.” This deal expands on several recent U.S. tariff resolutions with China, UK, and Vietnam, which removed threats of duties but left remaining tariffs unresolved.
Economists say Indonesia may benefit more politically than economically, as U.S. tariffs on electronics and palm oil persist despite reduced rates on key goods. Meanwhile, Boeing secures a lucrative contract, although analysts caution more work is needed on non-tariff barriers to facilitate deeper trade.