The agreement was finalized after Trump's meeting with Indonesian President Prabowo Subianto. Trump announced in a statement that higher tariffs will be imposed on goods shipped via transshipment through third countries.
Under the new deal, Indonesia has pledged to buy USD 15 billion worth of energy, USD 4.5 billion worth of agricultural products and 50 passenger planes, mostly Boeing 777s, from the United States. Trump described the trade deal as “a great deal for everyone.”
Last week, Trump threatened to impose a 32% tariff on Indonesian goods and announced that it would take effect on August 1. However, thanks to the agreement, the tariff was reduced to 19%.
On the other hand, it is not yet clear when the new 19% tariff will start to be applied and in which time frame the purchase commitments will be realized. Boeing shares remained flat after the announcement.
Comments
No comment yet.