The United States and Indonesia have reached a major trade agreement that will see Indonesia eliminate tariffs on over 99% of U.S. goods and remove non-tariff barriers, opening at least $50 billion in new market access for American businesses. In return, the U.S. will impose a 19% tariff on Indonesian exports—lower than the previously threatened 32%—while Indonesia will lift export restrictions on critical minerals, benefiting U.S. industries. The deal also includes Indonesia's commitment to purchase 50 Boeing aircraft, further boosting American manufacturing. While hailed as a win for U.S. exporters, some Indonesian industries express concern over the impact of the 19% tariff on their competitiveness. The agreement is seen as a significant step in strengthening economic ties, but questions remain about its long-term effects on Indonesia's economy and energy transition goals.
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