FX.co ★ Indonesia, US Near Tariff Deal Signing in January

Indonesia and the United States have reached consensus on all major aspects of a tariff agreement, setting the stage for Presidents Prabowo Subianto and Donald Trump to formally sign the accord by the end of January, as reported by Reuters. Indonesia's chief negotiator revealed this after his discussions in Washington on Monday with US Trade Representative Jamieson Greer. The United States has shown interest in accessing Indonesia’s critical mineral resources and has agreed to provide tariff exemptions for Indonesian exports of palm oil, tea, and coffee. Notably, Indonesia holds the position as the leading global exporter of palm oil and is a significant supplier of robusta coffee beans. Initially, President Trump had enforced a 19% tariff on Indonesian goods following a preliminary arrangement in July, a reduction from the previously proposed 32% in April. This adjustment was in return for Indonesia's pledge to dismantle certain trade barriers affecting US exports and commit to increasing imports of American products to help reduce the trade imbalance.