US, Indonesia strike critical mineral and tariff deal; Trump hails ‘huge win’

The United States and Indonesia have reached a major trade agreement aimed at easing export restrictions on critical minerals and lowering tariffs, the White House announced Tuesday. President Donald Trump called the deal a “huge win” for American companies.

As part of the agreement, the US will reduce a previously threatened 32% tariff on Indonesian goods to 19%. However, goods identified as being transshipped to evade higher duties will face a 40% tariff, a US official confirmed.

Trump announced on Truth Social that Indonesia will eliminate 99% of its tariff barriers on American industrial, tech, agricultural, and energy products. In return, the Southeast Asian nation—one of the world’s top producers of copper, cobalt, and nickel—will supply the US with key critical minerals and sign major purchase deals, including for Boeing aircraft and agricultural goods.

A joint statement from both governments said Indonesia would remove export restrictions on industrial commodities, including critical minerals, and certain goods unavailable in the US could face even lower duties.

In a further win for US firms, Indonesia will abandon its push to tax cross-border data flows—a move a US official described as a “revenue grab”—and drop pre-shipment inspections for US imports. It has also agreed to accept US motor vehicle safety standards.

The final version of the deal is expected to be signed in the coming weeks. The agreement is part of a wider effort by the Trump administration to secure trade pacts ahead of August 1, when higher tariffs on dozens of economies are set to take effect.

The deal with Indonesia follows similar agreements recently signed with Britain, Vietnam, and the Philippines. The US and China also agreed to a temporary reduction in mutual tariffs, though that arrangement is set to expire in mid-August.

According to US officials, the Indonesia deal could be worth at least $50 billion in market access and commercial purchases.