The Tamesis
Indonesia has agreed to buy more than $30 billion worth of U.S. energy commodities, agricultural products and Boeing aircraft as part of a trade deal with the Trump administration.
The United States and Indonesia have finalized a trade deal that locks in tariff rates and non-tariff trade barriers, the White House announced Thursday.
Indonesian government officials organized a press conference at a hotel in downtown Washington to celebrate the signing of the reciprocal agreement The agreement was originally announced last July.
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The agreement imposes a 19% tariff on Indonesian goods entering the United States. Before the deal, the Southeast Asian country of more than 280 million people had been threatened with possible 32% tariffs.
Open door to American goods
Jakarta agreed to exempt U.S. companies from local content requirements and to address and prevent barriers to the sale of U.S. agricultural products in Indonesia, among other measures, according to a White House fact sheet.
Indonesia also agreed to buy US$33 billion worth of US energy commodities, agricultural products and aviation-related goods, including Boeing aircraft, AFP reported.
After shocking financial markets last spring high tariff planTrump announced multiple deals, and Détente with China.
Trump announced a trade deal on February 2 Agreement to reduce tariffs on India.
Earlier this week, he unveiled some Japan pledges US$36 billion This is part of the trade agreement announced by Washington and Tokyo in July 2025.
The U.S. goods trade deficit widened to a new record in 2025 despite Trump’s aggressive trade policies, government data showed on Thursday.
Last year’s full-year goods trade deficit was US$1.24 trillion, a slight expansion from the 2024 level and reaching the highest level since Commerce Department data since 1960.
court decision
The White House appears to be doing its best to lock in a trade deal until the U.S. Supreme Court rules on whether the laws used by the Trump administration to impose tariffs are fit for purpose.
stern questioning U.S. Supreme Court justices suggested in November that the Trump administration may not have the authority to impose tariffs under the International Emergency Economic Powers Act of 1977 (IEEPA) because there is no mention of tariffs in the act, only language regulating imports during a national emergency declared by the U.S. president.
This has fueled speculation that the tariffs will be lifted.
U.S. Customs and Border Protection collected more than $130 billion in tariff revenue under IEEPA in fiscal years 2025 and 2026, which ended Dec. 14, according to one person Federal Data AnalysisIt is said that this accounts for about 60% of the total tariff revenue since Trump imposed tariffs.
However, the courts may delay as the impact may be greater and impose a significant administrative burden on the government.
this Trade Compliance Resource Center It is said that by June, the amount collected may reach 1 trillion US dollars. Therefore, the prospect of dealing with such a large refund may be something that the courts will have to consider and may even want to try to mitigate.
An adverse ruling would spark fears of uncertainty and chaos, but the Trump administration is also expected to turn to other means to achieve the same outcome.
Gary Hufbauer is a former Treasury official responsible for international trade and current nonresident senior fellow at the Peterson Institute for International Economics, told CNBC Yesterday: “The president is going to step in and use other regulations to impose almost identical tariffs.
Hufbauer said there are several other laws the Trump administration could use more forcefully if the Supreme Court overturns the IEEPA tariffs. He was quoted as saying that one of the “easiest” ways to do this is through Section 232 of the Trade Expansion Act of 1962.
- Jim Pollard and AFP
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