US and Indonesia Agree to Cut Tariffs in Trade Deal

Washington D.C. The United States and Indonesia have reached an agreement regarding the reduction of additional customs duties (tariffs). An agreement was reached between US President Donald Trump and Indonesian President Prabowo Subianto to reduce the US import duty imposed on Indonesia from 32 percent to 19 percent.

According to the agreement reached on Thursday, Indonesia will remove trade barriers on more than 99 percent of American goods, the White House stated. This includes agriculture, healthcare, marine products, technology, and auto-related materials.

The US has also granted duty exemptions on certain Indonesian goods, particularly clothing and textiles made from American cotton or synthetic fibers. US Trade Representative Jamison Greer stated that this agreement will advance American interests by breaking down trade barriers.

Under the agreement, Indonesia will accept US vehicle safety and emission standards. Furthermore, US Food and Drug Administration standards will be implemented for the production of medical devices and pharmaceuticals.

In addition, Indonesia has committed to allowing easier market access for American agricultural and technology products. The agreement was formally signed when President Subianto attended the 'Board of Peace' meeting led by Trump during his visit to Washington.