Trump Talks of ‘Historic’ Trade Deal with Indonesia in UN Speech
Jakarta. US President Donald Trump delivered Tuesday the first address of his second term to world leaders at the UN General Assembly, a speech that also highlighted his punitive reciprocal tariffs and the 19-percent-import-tax trade deal with Indonesia.
Trump got up on the podium right after his Brazilian counterpart Lula da Silva and before Indonesian leader Prabowo Subianto. Speaking for almost an hour, about four times longer than Lula and Prabowo’s statements, Trump boasted about how he had closed some “historic” deals with countries.
The US has been imposing 19 percent tariffs on Indonesian goods entering its market since Aug. 7 as part of a deal aimed at improving Washington's deficit. Jakarta managed to convince Trump to slash his originally intended 32 percent import tax, but it had to make some major concessions, including letting most American goods freely enter its market at zero tariff.
“My administration has negotiated one historic trade deal after another, including with the UK, the European Union, Japan, South Korea, Vietnam, Indonesia, the Philippines, Malaysia, and many, many others,” Trump told the high-profile conference on Tuesday.
While the US seeks to do business with all nations, Trump reminded leaders that the trade should be “fair and reciprocal”. The businessman-turned-politician then went on to defend the tariff move, saying that other countries had long “uncontrollably applied” similar import taxes on his country for years. He also accused other countries of breaking international trade rules, causing factories in compliant nations to be plundered.
“We have used tariffs as a defense mechanism under the Trump administration, including my first term, where hundreds of billions of dollars in tariffs were taken in,” Trump said.
He added: “We are using tariffs to defend our sovereignty and security throughout the world, including against nations that have taken advantage of former US administrations for decades, including the most corrupt, incompetent administration in history, the sleepy Joe Biden administration.”
The White House reported that the US had run a $17.9 billion goods trade deficit with Indonesia in 2024, up 5.7 percent year-on-year (yoy). The US, however, enjoyed a $1.4 billion trade surplus with the Southeast Asian country last year, down 8.7 percent yoy. According to the statistics agency BPS, trade with the US remained most advantageous for Indonesia as the latter saw a non-oil and gas trade surplus of $12.13 billion between January and July 2025. However, this was still before the 19-percent-tariff kicked in, although there was already a baseline 10 percent tax on goods imported from Indonesia and elsewhere in effect since early April.
The deal sees Indonesia eliminating approximately 99 percent of its tariff barriers for US goods, ranging from agri-food and industrial products. Jakarta also made some import commitments, namely aircraft ($3.2 billion), agricultural products ($4.5 billion), and $15 billion worth of American energy.
Both Prabowo and Trump -- alongside other leaders of Muslim-majority countries -- had also met on the margins of the UN talks to discuss Gaza later that day. Trump called this “the most important meeting” as he pushed for hostage releases.
Tags: Keywords:Related Articles
Don’t Just Sign: Indonesia Must Follow Up on Its International Deals
Ex-Deputy Foreign Minister Dino Patti Djalal says it's better to have just 10 agreements that are fully implemented.Prabowo Orders Expansion of Papua Agriculture Programs Backed by Record Funding
Prabowo orders continued expansion of Papua farm programs backed by Rp 5.5 trillion in funding.Prabowo to Host German President Steinmeier on Monday
Not much is known about what sort of deals Prabowo-Steinmeier talks will roll out.Thousands of Indonesian Students Rally Against Govt Policies
Thousands of Indonesian students rallied in Jakarta, criticizing rising living costs, government spending, and controversial state programs.From 32% to 10% to 18%: Indonesia Lives Under Trump's Tariff Uncertainties
Indonesia has been trying to navigate US trade uncertainties, but officials are confident that the tariffs won't derail exports.Kalla Group Pledges $3.9B for Energy After Prabowo Talks
Kalla Group says it is ready to invest up to Rp 70 trillion in renewable and gas power projects.Prabowo Pledges Cheaper Generic Drugs Within a Year
Prabowo pledged cheaper generic medicines within a year as Indonesia accelerates hospital and healthcare upgrades nationwide.Prabowo Targets 400 Hospital Upgrades in Three-Year Healthcare Push
Prabowo aims to modernize up to 400 hospitals and 10,000 clinics nationwide within three years to improve healthcare access.Trump to Exempt Indonesian Palm Oil from Tariffs
Indonesia says rubber and coffee will also gain US tariff exemptions.Prabowo Receives Second Batch of Ambassadors Amid Scrutiny Over Accreditation Delays
President Prabowo Subianto received credentials from nine newly appointed ambassadors, bringing the total accredited this week to 17.The Latest
Ayase Ueda Scores Twice in Japan’s 4-0 Win Against Tunisia
Japan’s four goals were the most the Samurai Blue had ever scored in a World Cup game.Jakarta Completes Rasuna Said Revamp, Removes 109 Derelict Pillars
Jakarta has completed the transformation of Rasuna Said, removing 109 abandoned monorail pillars and upgrading public spaces.Curacao Earns First-Ever World Cup Point after Goalless Draw with Ecuador
Curacao goalkeeper Eloy Room made 15 saves against a relentless Ecuador attack, allowing The Blue Wave to earn a 0-0 draw.Germany Beats Ivory Coast 2-1 to Advance to World Cup Knockout Phase
Four-time champion Germany has come back from disappointing group stage exits in 2018 and 2022.Netherlands Routs Sweden 5-1 to Lead Group F
Sweden coach Graham Potter said the defeat was less about what his team did and more about just how good Netherlands played Saturday.Most Popular
