US President Donald Trump announced a preliminary trade deal with Indonesia, which he had threatened with 32% duties starting Aug. 1.
Southeast Asia’s largest economy will face a 19% tariff per the pact, while US exports to Indonesia won’t be taxed, according to the White House.
Trump said he negotiated directly with Indonesian President Prabowo Subianto, who has recently been on something of a diplomatic blitz: He attended France’s Bastille Day parade Monday, heralding closer ties with Paris, and he has deepened economic investments in the Gulf.
However, underneath the “whirlwind of international activity,” Prabowo’s foreign policy lacks substance and he “has yet to articulate what Indonesia stands for in global affairs,” East Asia Forum argued last month.
