US President Donald Trump announced he has agreed to a deal with Indonesia but did not give any details of what is in the agreement.
“Great deal, for everybody, just made with Indonesia. I dealt directly with with their highly respected President. DETAILS TO FOLLOW!!!” the US president posted Tuesday on social media.
The White House likewise did not provide details of the agreement in an immediate response to Trump's tweet. Indonesia's economic affairs ministry was not available to comment during non-business hours in Jakarta.
Markets have been in holding pattern on Trump's trade announcements, as he has reversed rates and deadlines several times since initially threatening country-by-country tariffs in April. The iShares MSCI Indonesia ETF gained as much as 0.7% Tuesday morning New York time following Trump's tweet, while the S&P 500 barely budged and was still higher on the day.
Trump made the announcement after he threatened to slap a 32% tariff on Indonesian products on Aug. 1 last week. The country then deployed its highest-ranking trade negotiator to sit down with Trump Cabinet members in a bid to get an agreement.
Indonesia's Coordinating Minister for Economic Affairs Airlangga Hartarto last week introduced a number of business transactions in meetings with US officials, including Trade Representative Jamieson Greer, Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent, the ministry said.
A deal with Indonesia would be the fourth trade agreement Trump has announced with a foreign government, following Vietnam and the UK. The US and China also concluded a tariff truce that includes the scheduled resumption of trade in critical minerals and technology between the world's two largest economies.
Pacts trumpeted by Trump have so far come short of being actual trade agreements, with much remaining to be hashed out later. The leadership of Vietnam was even surprised by Trump's announcement that Hanoi had agreed on a 20% tariff, and the Southeast Asian nation is still trying to negotiate the rate down, according to individuals in the know.
Trump has kept foreign investors and governments in suspense regarding his tariff policy, with trading partners scrambling to stay clear of higher import duties and markets getting another injection of uncertainty. The US president signaled Monday he wanted to retain levies that were part of letters written last week, stating, "I really don't want deals. I just want the paper to get sent."
The president further added that he was open to further negotiations with large economies, including the European Union.
Trump has kept foreign governments and investors on edge about his tariff agenda, with trading partners rushing to avoid higher import taxes and markets facing yet another dose of uncertainty. The US president indicated Monday he preferred to stick with levies included in letters sent last week, saying, “I really don’t want deals. I just want the paper to get sent.”
Trump in the past week sent a volley of tariff demand letters, notifying other economies of new tariffs that will take effect Aug. 1 if they are unable to do better with the US. The letters pushed back from an original July 9 deadline another three weeks, sparking another panicky scramble of negotiations.
Southeast Asian countries reluctant to have to decide between the US and China have traditionally found themselves stuck in middle of economic and political confrontations between the two superpowers. While Vietnam is reportedly more advanced in trade talks with the US, Thailand is in discussions and weighing how to lower US tariffs without sacrificing too much and triggering domestic instability.
Philippine government officials also are racing to obtain an agreement before the new deadline, with President Ferdinand Marcos Jr. planning to travel to Washington later this month in a bid to limit or cancel Trump's scheduled 20% tariff on the island nation.
