Fri, 20 Feb 2026

Fri, 20 Feb 2026 US and Indonesia finalise deal to cut tariffs to 19%

Washington will set a 19% tariff on most Indonesian goods in exchange for lower trade barriers for US goods

* Tariffs on Indonesian imports will be lowered from 32% to 19%
* Indonesia will cut trade barriers on over 99% of American imports, including: + Agriculture + Healthcare + Seafood + Technology + Car-related goods
* US granted tariff exemptions on certain Indonesian goods, including clothing and textiles made with US cotton and man-made materials
* Indonesia secured tariff exemptions for over 1,700 goods, including: + Coffee + Spices + Chocolate + Natural rubber + Palm oil (its top export product)
* Agreement will take effect in 90 days and can be modified if both countries agree
* Deal includes provisions for Indonesia to open up its markets to American products, such as by accepting US standards on car safety and emissions
* Indonesia will also facilitate the development of US firms in rare earths infrastructure to help expand US supply of critical minerals
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