President Donald Trump announced on Tuesday he has secured two new trade deals with Indonesia and with the Philippines.
New Indonesian trade deal
"It is my Great Honor to announce our Trade Agreement with the Republic of Indonesia, as represented by their Highly Respected President, Prabowo Subianto," President Trump wrote on social media. "It is agreed that Indonesia will be Open Market to American Industrial and Tech Products, and Agricultural Goods, by eliminating 99% of their Tariff Barriers. The United States of America will now sell American Made products to Indonesia at a Tariff Rate of ZERO, while Indonesia will pay 19% on all of their products coming into the U.S.A."
As part of the deal, Indonesia will also sign agreements to purchase American-made aircraft and farm equipment and American energy, and provide the U.S. access to natural mineral resources.
"We all know that sensitivity and importance of critical minerals," An administration official said in a call with reporters. "Indonesia is a large producer, and they have large resources in this area. Until now, they had closely controlled these exports, but they are agreeing that for the United States, they will remove these restrictions."
The White House says Indonesia will take more steps to eliminate non-tariff trade barriers to grant U.S. industrial and agricultural firms more access to its market, including by accepting vehicles built to U.S. safety standards and accepting U.S. regulations on imported meat and dairy.
RELATED STORY | The EU is delaying retaliatory tariffs on U.S. goods, in hopes of reaching a deal by Aug. 1
Agreement with the Philippines
"The Philippines is going OPEN MARKET with the United States, and ZERO Tariffs," President Trump stated on Truth Social. "The Philippines will pay a 19% Tariff."
The president also said the two countries would work together militarily as part of the deal.
The announcement came on the same day Philippine President Ferdinand Marcos Jr. visited the White House. He is the first Southeast Asian leader to hold talks with President Trump at the White House since he returned to office.
“This has evolved into as important a relationship as is possible to have," Marcos said.
President Trump has been pursuing trade agreements with countries around the world. In April, he announced sweeping reciprocal tariffs but paused implementation while negotiations took place. He recently set a new Aug. 1 deadline for countries to reach agreements before the tariffs go into effect.
The new 19% tariff on the Philippines is lower than those proposed for some other countries.
Among the more notable measures, President Trump said he would impose 25% duties on imports from Japan and South Korea. He also warned leaders of both nations that tariff rates could rise further if they respond with their own tariffs.
