Trump touts deal with Indonesia, flags pharma tariffs
US President Donald Trump said the US will apply a 19 percent tariff to goods from Indonesia within a new agreement with the Southeast Asian country.
He said that more agreements are in studies while continuing pressure on what he sees as better conditions with the trade partners and the way to reduce a large US trade deficit.
The relatively small US trade partner came to the US trade partner – European Union – ready -made retaliation measures for the tariffs dated 1 August, the US and the best trading partner for the tariffs dated 1 August for the re -rise of imports.
As this deadline approached, negotiations continued with other trade partners who willing to prevent more taxes on exports to the United States in most goods that have come into force since April.
This is often a chaotic policy regime, which is often released by Trump, which raises tendencies for lower trade barriers, often circulating global financial markets and economic activities along this path.
Based on Trump tariff announcements, the Yale budget laboratory until July 13 estimates that the US’s effective average tariff rates will rise to 20.6 percent between two to three percent before Trump returned to the White House in January.
Trump outlined an Indonesian Agreement with rude contours that resembled a recent agreement with Vietnam, and a fixed tariff on export to the United States has doubled the current 10 percent, and did not pay any tax on US exports.
It also included a penalty rate for the so -called transfer of goods from China through Indonesia and the commitment of purchasing some US goods.
Trump, outside the oval office, “they will pay 19 percent and we will not pay anything … We will have full access to Indonesia and have a few of these agreements to be declared,” he said.
In addition, Trump later said on the real social platform that Indonesia agreed to buy $ 15 billion (A23 billion) US energy product, $ 4.5 billion farm product and 50 Boeing jet.
The total trade of Indonesia with the United States – in 2024 is not a total of $ 40 billion – it is not in the top 15, but it is growing.
While the US exports to Indonesia increased by 3.7 percent last year, imports increased by 4.8 percent and left the US with a trade deficit of a goods of approximately $ 18 billion.
Susiwijono Moegiarso, a senior official of Indonesia’s Ministry of Economic Affairs Coordination, said in a short message to Reuters: “We and Indonesia, we will soon inform a common explanation for the mutual tariff size for Indonesia, including the tariff agreement, compatible and commercial arrangements.
In a letter sent to the President last week, Trump threatened with a 32 percent tariff rate that was valid on August 1st.
This month, including Canada, Japan and Brazil, sent letters to approximately two dozen trade partners, and from 20 percent to 50 percent blanket tariff rates and 50 percent tariff in copper.
The deadline for August 1 gives the time to negotiate agreements that can reduce tariffs threatened to targeted countries.
The President of the United States also said that he would explain the tariffs about pharmaceutical drugs.
Trump told reporters that such an announcement could be “end of the month ..
Trump said it would start at a lower tariff rate and give companies a year to build domestic factories before they faced higher import tax rates.
“… There are two ways to do this. You make money or make them move here, so they don’t have to pay the tariff. These are two ways.
“Pharmaceutical companies return to America, which should be.”
Earlier this month, the US President organized plans to bring 200 percent tariffs to drug imports and threatened Australia’s third most important exports.
With AP
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