Reports: Indonesia Deal to Avoid 32% Tariffs Near Completion
Bloomberg reported that an Indonesian delegation's trip to Washington that had been scheduled for next week was canceled because its proposal to address its trade surplus was considered sufficient.
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That story followed one on CNN Indonesia, where Coordinating Minister for Economic Affairs Airlangga Hartarto said that the Office of the U.S. Trade Representative said its documents were complete, and just needed to be submitted to the Indonesian president and President Donald Trump.
Although Indonesia exported $18 billion more to the U.S. than vice versa, a former vice president said last month that a 32% tariff on Indonesian goods would be small, since only 10% of its exports are to the U.S.
Indonesia, after nine years of negotiations, just concluded free trade talks with the EU, which will offer zero tariffs on exported apparel and footwear immediately, and will phase out tariffs on processed palm oil and EV battery components over five years. About 80% of Indonesia's exports to the bloc will be duty free if the EU approves the deal.
However, a report earlier in the week described the outlook as uncertain, with an Indonesian official asking: "Who can guess what Trump might do?"