U.S. President Donald Trump announced Tuesday that he has reached a trade agreement with Indonesia — but provided no specifics about what the deal includes.
“Great deal, for everybody, just made with Indonesia. I dealt directly with their highly respected President. DETAILS TO FOLLOW!!!” Trump wrote on social media.
The announcement comes just days after Trump threatened to impose a 32% tariff on Indonesian imports starting August 1. The White House has not yet released further details about the agreement, and Indonesian officials have not commented publicly.
High-Stakes Trade Pressure
Trump’s latest move follows a series of aggressive tariff threats aimed at pushing foreign governments into fast-track negotiations. Last week, he issued tariff demand letters to several nations, giving them until August 1 to reach better trade terms or face higher import duties.
Indonesia responded quickly, sending Coordinating Minister for Economic Affairs Airlangga Hartarto to Washington. Hartarto met with U.S. officials including U.S. Trade Representative Jamieson Greer, Commerce Secretary Howard Lutnick, and Treasury Secretary Scott Bessent to present a series of investment proposals.
Markets React Cautiously
Investors reacted cautiously to the news. The iShares MSCI Indonesia ETF climbed as much as 0.7% on Tuesday morning in New York, while the S&P 500 remained steady.
Trump has a history of making broad trade announcements that lack immediate substance. Agreements with Vietnam and the UK, announced earlier this year, remain in partial limbo, with key details still under negotiation. In Vietnam’s case, officials were reportedly surprised by Trump’s declaration that they had agreed to a 20% tariff, and are now working to lower it.
Broader Tariff Strategy
Trump has kept global markets on edge with his hardline tariff agenda. In a statement earlier this week, he said he would prefer to “stick with levies” outlined in letters sent to trading partners last week. “I really don’t want deals. I just want the paper to get sent,” Trump said.
Talks with other nations are still ongoing. The Philippines is racing to finalize a deal before the new deadline, with President Ferdinand Marcos Jr. expected to visit Washington later this month. Meanwhile, Thailand continues to negotiate, balancing U.S. demands with concerns about domestic backlash.
The new Indonesia deal, if confirmed and detailed, would mark Trump’s fourth announced trade framework this year, following agreements with Vietnam, the UK, and a temporary tariff truce with China.
For now, however, the specifics remain unclear — and foreign officials and markets remain in wait-and-see mode.
