The U.S. and Indonesia have reached a deal on tariffs, reducing the tariffs faced by the southeast Asian country from 32% to 19%.

According to BBC News, President Donald Trump said this was in exchange for "full access" for American firms. Trump said Indonesia had agreed to lower its trade tariffs for products from the U.S., which America has complained were high for many agricultural products as well as certain manufactured goods.

Indonesian President Prabowo Subianto wrote on Instagram that the deal marked a "new era of mutual benefit" with Washington. Trump was "quite a tough negotiator", Prabowo told reporters in Jakarta on July 16.

Indonesia also received a letter from Trump last week outlining plans for a 32% tariff on its goods, reportedly bewildering officials who had thought an agreement was close. But Trump said on July 15 that he had reduced that rate after a phone call with the president of Indonesia.

Indonesia has also agreed to purchase $15 billion of U.S. energy, $4.5 billion of American agricultural products and 50 Boeing jets, Trump later wrote on social media.

Indonesia ranks as one of America's top 25 trade partners, sending about $28 billion to the U.S. in 2024, including clothing, footwear and palm oil.