Trump To Bring Smaller Trading Partners Into Tariff Net After Clinching ‘Landmark’ Indonesia Deal, Including Commitment To Buy 50 Boeing Jets

 President Donald Trump signaled that he would not spare smaller countries, following the barrage of letters sent to America’s more significant trading partners over the past week. Separately, the president detailed the trade deal he struck with Indonesia in a social-media post. 

“We’ll be releasing a letter soon talking about many countries that are much smaller, where you might not do an [individual] letter,” Trump said while speaking to reporters after returning from the Pittsburgh Artificial Intelligence (AI) Summit, according to the Wall Street Journal.

“We’ll just do one tariff for all of them,” he said, adding that it would “probably be a little over 10%.”

Trump said he was very happy with the “simple deals” already announced, which set blanket levies for more than two dozen countries.

The U.S tariffs, which caused a market meltdown when they were first announced in April, have not hindered the recent rebound. Investors expect that the issue will be resolved soon, and the tariff impact will be less severe than initially feared.

The SPDR S&P 500 ETF (SPY) and the Invesco QQQ Trust (QQQ), exchange-traded funds (ETFs) that track the S&P 500 Index and the Nasdaq 100 Index, have gained 6.79% and 9.18%, respectively, for the year.

After flagging that a “great deal” was struck with Indonesia in a Truth Social post Tuesday morning, Trump shed more details in a separate post later in the day. 

“This morning I finalized an important Deal with the Republic of Indonesia after speaking with their Highly Respected President Prabowo Subianto,” he said, adding that “This landmark Deal opens up Indonesia’s ENTIRE MARKET to the United States for the first time in History.”

According to Trump, the deal includes Indonesia offering a commitment to purchase $15 billion worth of U.S. energy, $4.5 billion worth of agricultural products, and 50 Boeing jets, with the majority being the 777s.

Indonesia agreed to a 19% tariff on all goods it exports to the U.S., while the U.S. exports to Indonesia would be free of tariffs and non-tariff barriers. The tariff rate on Indonesian exports to the U.S. was 5% in 2024.

The U.S. President clarified that any transshipment from Indonesia will incur additional tariffs, which will be applied in addition to the 19% baseline rate.

Incidentally, Indonesia was among the nations to which Trump sent letters last week, and the president flagged a 32% rate at that time. 

A Bloomberg report, citing its in-house economists, stated that even the reduced 19% rate will result in a 25% decline in Indonesia’s exports to the U.S. in the medium term, which will hurt its GDP by 0.3 percentage points.

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