Jakarta. US President Donald Trump is eyeing Indonesian copper as Washington struck a deal to impose a 19 percent tariff on Southeast Asia’s largest economy, a significantly lower rate than previously announced.

Indonesia had been trying to convince the Trump government to lower their planned 32 percent tariffs in a series of talks that had begun since April. Trump had just revealed that he would do so, even bringing it down to 19 percent, after Indonesia agreed to grant tariff-free access to US goods. He also claimed that Jakarta had given its word to get rid of its non-tariff barriers. Speaking to the press at the White House on Tuesday local time, Trump revealed that this deal could enable the US to easily get its hand on Indonesian copper  --a critical component in electric vehicles and advanced electronics.

"Indonesia is very strong on copper, but we have full access to everything. We will pay no tariffs," Trump said, as seen in a video uploaded by Bloomberg Podcasts.

“So they [Indonesia] are paying 19 percent [tariffs], and we are not paying anything. They are going to give us full access to Indonesia. Now, Indonesia has some great products. They have very valuable earths and various other materials. One of the things that you know they are known for is very high-quality copper, which we will be using,” Trump said.

Trump stated that he had made the deal directly with his Indonesian counterpart, Prabowo Subianto, whom he called “very popular, strong, and smart." Copper is the same red metal that Trump imposed a 50 percent new levy on last week, an import tax hike that was set to take effect next month. 

As part of the tariff deal, Indonesia had agreed to purchase $15 billion US energy, as well as $4.5 billion American farm products. Indonesia also promised that it would buy 50 Boeing jets under the new agreement, according to Trump. The US reported that its deficit with Indonesia had grown 5.4 percent year-on-year to $17.9 billion in 2024.

The Indonesian government has yet to comment on the latest deal.

The US Geological Survey reported that Indonesia’s copper reserves stood at 21 million metric tons, still half of that of the US. Indonesia mined approximately 1.1 million metric tons of copper in 2024. Its domestic refinery production also stood at 350,000 metric tons that same year, compared to the 890,000 metric tons in the US. According to the White House, the US heavily relies on foreign sources for mined, smelted, and refined copper. Its smelting and refining capacity still lags behind other countries.