FX.co ★ Indonesia to Drop Tariffs, Non-Tariff Barriers Under U.S. Trade Deal

Indonesia has committed to abolishing tariffs on more than 99% of U.S. goods and eliminating all non-tariff barriers impacting American companies. Concurrently, the United States will decrease its intended tariffs on Indonesian products from 32% to 19%, as announced by both nations on Tuesday. Details were provided in a joint statement and a White House fact sheet, with a final agreement anticipated in the upcoming weeks. Jakarta will also cancel proposed tariffs on internet data flows and support the WTO’s e-commerce moratorium. Other significant commitments include removing pre-shipment inspections that have hindered U.S. agricultural exports, acknowledging U.S. vehicle safety standards, and lifting export restrictions on essential minerals. Furthermore, Indonesia will abolish local content requirements for these products and simplify licensing obstacles for U.S. remanufactured goods. In addition, it will participate in the Global Forum on Steel Excess Capacity, addressing the global surplus issues in the steel industry.