Indonesia and U.S. Move Toward Fairer Trade: A Breakthrough Deal That Could Benefit Millions

In a major step toward fairer and freer global trade, Indonesia and the United States have reached a landmark agreement that could reshape the economic relationship between the two nations — and bring real-world benefits to workers, farmers, manufacturers, and everyday consumers on both sides.

Announced on Tuesday, the deal will see Indonesia eliminate tariffs on over 99% of U.S. goods and remove various non-tariff barriers that have historically made it difficult for American companies to operate in the country. In turn, the U.S. has agreed to lower its proposed tariffs on Indonesian products from 32% to 19%.

Former U.S. President Donald Trump called the agreement a “huge win” for America’s automakers, tech innovators, farmers, ranchers, and workers. The two governments issued a joint statement emphasizing the agreement’s potential to give both sides “unprecedented access” to each other’s markets, with a final version expected in the coming weeks.

What makes this deal stand out is its real, human impact. For instance, American farmers who have struggled with Indonesia’s tough export requirements — like pre-shipment inspections — will now face fewer hurdles. These changes could help restore the positive agricultural trade balance the U.S. once enjoyed with Indonesia.

Another breakthrough comes for American automakers. Indonesia has agreed to accept U.S. vehicle safety standards, opening up a 280-million-strong market to American-made cars. Meanwhile, Indonesia will also lift export restrictions on key industrial commodities — including critical minerals — and drop local content requirements that previously limited trade.

Importantly, Indonesia is abandoning its plan to tax internet data flows, while also backing a long-standing global agreement to keep e-commerce duties at bay — a forward-looking move for digital trade and tech companies.

Both sides are also working to finalize rules that ensure the benefits stay within their borders and don’t leak to third-party nations. And in a move that reflects shared global responsibility, Indonesia has agreed to join the Global Forum on Steel Excess Capacity to help address the worldwide steel glut.

At its core, this is more than a trade deal. It’s about opening doors, cutting red tape, and creating opportunities for real people — from rice farmers in the American Midwest to small tech entrepreneurs in Jakarta.