Framework for United States-Indonesia agreement on reciprocal trade

Indonesia will eliminate 99% of tariff barriers; United States will reduce reciprocal tariffs to 19%. 

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July 22, 2025

The White House today announced that the United States and Indonesia have agreed on a framework to negotiate an agreement on reciprocal trade.

As explained in the White House release, key terms include Indonesia eliminating over 99% of tariff barriers on U.S. exports across various sectors, while the United States will reduce reciprocal tariffs on Indonesian goods to 19%.

According to a White House fact sheet, the U.S.-Indonesia Agreement on Reciprocal Trade will address:

  • Tariff barriers
  • Non-tariff barriers for U.S. industrial and agriculture exports
  • Rules of origin
  • Digital trade
  • Economic security
  • Labor standards
  • Commercial deals

For more information, contact a professional with KPMG Trade & Customs services:

Andrew Siciliano
Partner, U.S. & Global Practice Leader

E: asiciliano@kpmg.com

Doug Zuvich
Partner

E: dzuvich@kpmg.com

Irina Vaysfeld
Principal

E: ivaysfeld@kpmg.com

John L. McLoughlin
Principal

E: jlmcloughlin@kpmg.com

Luis (Lou) Abad
Principal

E: labad@kpmg.com

George Zaharatos
Principal

E: gzaharatos@kpmg.com

Christopher Young
Principal

E: christopheryoung@kpmg.com

Amie Ahanchian
Principal

E: aahanchian@kpmg.com

Gisele Belotto
Principal

E: gbelotto@kpmg.com

Steve Brotherton
Principal

E: sbrotherton@kpmg.com

Jessica Libby
Principal

E: jlibby@kpmg.com

Dawn Olesky
Principal

E: dolesky@pmg.com

Frances Xing
Principal

E: francesxing@kpmg.com

 

 

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