A landmark U.S.-Indonesia trade agreement announced in July is now in jeopardy, as U.S. officials say Indonesia is stepping back from critical commitments made during negotiations. According to a U.S. official speaking on condition of anonymity, Jakarta is now questioning several elements of the deal, raising concerns in Washington about the future of the agreement.
The original deal, unveiled on July 15 and touted by President Donald Trump as a major victory for American industries, included Indonesia’s pledge to remove tariffs on more than 99% of U.S. goods and eliminate non-tariff barriers that have long hindered American companies. In return, the United States agreed to scale back proposed tariffs on Indonesian exports to 19% from 32%.
However, U.S. Trade Representative Jamieson Greer was recently informed by Indonesian officials that the country cannot commit to certain binding provisions and is seeking to reframe its obligations. U.S. officials fear that altering these terms would result in a weaker agreement than those recently finalized with Malaysia and Cambodia. Both countries had cooperated closely with the U.S., with Malaysia notably removing thousands of tariff lines to facilitate smoother trade flows.
A report by the Financial Times indicated that Indonesia may be retreating from commitments to dismantle non-tariff barriers on key U.S. industrial and agricultural exports, as well as its promises to address digital trade challenges—an increasingly vital area in global commerce.
U.S. Treasury Secretary Scott Bessent echoed these concerns last week, describing Indonesia as “recalcitrant” regarding the deal, though he offered no further details. With negotiations at a sensitive stage, no official comment has yet been released by the U.S. Trade Representative’s office.
As both nations navigate this setback, the future of the trade pact remains uncertain, raising questions about potential impacts on U.S. exporters, regional trade dynamics, and ongoing economic cooperation between Washington and Jakarta.


RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target
Trump Allows Commercial Fishing in Protected New England Waters
U.S.-India Trade Framework Signals Major Shift in Tariffs, Energy, and Supply Chains
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election
Trump Endorses Japan’s Sanae Takaichi Ahead of Crucial Election Amid Market and China Tensions
Trump Allegedly Sought Airport, Penn Station Renaming in Exchange for Hudson River Tunnel Funding
U.S. Stock Futures Slide as Tech Rout Deepens on Amazon Capex Shock
Iran–U.S. Nuclear Talks in Oman Face Major Hurdles Amid Rising Regional Tensions
Oil Prices Slip as U.S.–Iran Talks Ease Supply Disruption Fears
Trump Lifts 25% Tariff on Indian Goods in Strategic U.S.–India Trade and Energy Deal
Ohio Man Indicted for Alleged Threat Against Vice President JD Vance, Faces Additional Federal Charges
Ukraine-Russia Talks Yield Major POW Swap as U.S. Pushes for Path to Peace
China Warns US Arms Sales to Taiwan Could Disrupt Trump’s Planned Visit
U.S. to Begin Paying UN Dues as Financial Crisis Spurs Push for Reforms
South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns
Gold and Silver Prices Slide as Dollar Strength and Easing Tensions Weigh on Metals 



