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United States finalizes trade deal with Indonesia

United States will maintain a 19% reciprocal tariff rate for imports from Indonesia, with certain products receiving a 0% rate.

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february 20, 2026

The Trump Administration on February 19, 2026, finalized a trade agreement with Indonesia.

According to the White House release:

  • Indonesia will eliminate tariff barriers on more than 99% of U.S. products, including agricultural products, health products, seafood, information and communications technology, automotive products, and chemicals. Indonesia will also remove non-tariff barriers, such as local content requirements and burdensome certification standards. The agreement also covers digital trade, with Indonesia committing to eliminate tariffs on intangible products and support a permanent moratorium on customs duties for electronic transmissions.
  • The United States will maintain a 19% reciprocal tariff rate for imports from Indonesia, with certain products receiving a 0% rate. A mechanism will be established for select Indonesian textile and apparel goods to receive a 0% tariff rate.

Both countries will now undertake domestic procedures to make the agreement effective.

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@kpmg.com

Frances Xing
Principal

E: francesxing@kpmg.com

 

 

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