The United States has reached a trade deal with Southeast Asian country Indonesia, US President Donald Trump said. As a result of the deal, US tariffs on Indonesia have been reduced to 19 percent.

Earlier, a letter had announced that the tariff would be raised to 32 percent. Trump negotiated the deal directly with Indonesian President Prabowo Subianto. However, Indonesia has not yet commented on the deal.

The British media outlet BBC reported this information in a report on Wednesday (July 16).

The media outlet reports that President Trump said he had reached a new tariff deal with Indonesia. According to him, the deal will reduce the 32 percent tariff the United States was going to impose on goods imported from Indonesia to 19 percent.

In return, US companies will get "full access" to the Indonesian market. There was no immediate official comment from the Southeast Asian country, which has a relatively small but rapidly growing trade relationship with the US.

The Trump administration's trade talks with countries around the world have been in full swing since the White House announced a raft of tariffs in April. Trump initially put some plans on hold, but in July he renewed his threat that countries that fail to reach an agreement with the United States would face higher tariffs starting August 1.

The list includes all of the United States' major trading partners, including the European Union, Canada, Mexico, Japan and South Korea. Indonesia also received a letter from Trump threatening a 32 percent tariff, causing confusion among officials in the country who thought a deal was almost finalized.

Trump said he had reduced the tariff to 19 percent after speaking by phone with the Indonesian president. He said Indonesia would also reduce its tariffs on U.S. agricultural products and some manufactured goods as part of the deal, which the United States has long complained about.

"They'll pay 19 percent tariffs, and we'll pay nothing. We're getting full access to Indonesia," Trump said.

He later added on social media that under the agreement, Indonesia will buy $15 billion in fuel, $4.5 billion in agricultural products, and 50 Boeing aircraft from the United States.

But the amount of trade Trump has mentioned is smaller than the size of the deal previously estimated in a Reuters report. Indonesia exported about $28 billion in goods to the United States in 2024, including clothing, footwear and palm oil. The country is currently one of the United States' top 25 trading partners.

“The political gains for Indonesia from this deal are more than economic,” said Stephen Marks, an economics professor at Pomona College in California. “The United States is important to Indonesia in terms of total trade, but not as important as other Asian partners,” he said.

In addition to Indonesia, the US has so far signed agreements with the UK, China and Vietnam. However, high tariffs remain in place in all of these agreements and many important issues remain uncertain.