Indonesia to sign $34 billion pact with U.S. partners ahead of tariff negotiation deadline, minister says

03 Jul 2025

Riyadh -Maaal

TOPSHOT - US President Donald Trump announces tariffs on auto imports in the Oval Office of the White House in Washington, DC, on March 26, 2025. Trump announced imposition of 25 percent tariffs on all cars and light trucks not built on US soil. "What we're going to be doing is a 25 percent tariff on all cars that are not made in the United States. If they're made in the United States, it is absolutely no tariff," he announced at the White House. (Photo by Mandel NGAN / AFP)

Indonesia will sign a pact worth $34 billion with business partners next week to boost purchases from the United States, as part of efforts to strike a trade deal with Washington ahead of the July 9 deadline, Indonesia’s chief economic minister said on Thursday.

Jakarta is facing a 32% tariff in U.S. markets and has previously offered to increase U.S. imports to facilitate trade talks between the two sides, according to Reuters.

Indonesia enjoyed a goods trade surplus of $17.9 billion with the United States in 2024, according to the U.S. Trade Representative.

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Speaking to journalists, Minister Airlangga Hartarto said the memorandum of understanding due to be signed on July 7 will deploy the $34 billion for new Indonesian investments and purchases in the United States.

Airlangga said that by addressing the trade balance with the United States, Indonesia hoped to get a better trade deal than the one struck with Vietnam.

The United States announced on Wednesday that it will place a lower-than-promised 20% tariff on many Vietnamese exports, down from the original 46% announced by President Donald Trump in April.