FX.co ★ U.S. Tariff on Indonesia May Take Effect Before August 1

A U.S. tariff of 19% on Indonesian exports may be implemented sooner than the initially anticipated deadline of August 1, according to Indonesia's Chief Economic Minister, Airlangga Hartarto. The definitive timing is dependent on an upcoming joint statement between the two nations. The tariff threat arose from a recent trade dispute; however, after negotiations last week, President Trump agreed to reduce the proposed tariff rate from 32% to 19%. As part of the agreement, Indonesia has pledged to purchase USD 15 billion in U.S. energy, USD 4.5 billion in agricultural products, and 50 Boeing aircraft. In return, the U.S. would receive unrestricted access to Indonesian markets. "We are still waiting for the official joint statement," Airlangga mentioned, indicating that discussions are ongoing and the situation remains dynamic.