Trump's Trade Tango: New Deal with Indonesia Amid EU Retaliation
President Donald Trump announced a trade deal with Indonesia aimed at reducing the U.S. trade deficit. The agreement emerges as the EU prepares retaliatory measures should U.S.-EU trade talks falter. Although U.S.-Indonesia trade is not among the top, it has been increasing, prompting negotiations and new tariff strategies.
In a strategic move to address the United States' significant trade deficit, President Donald Trump announced a new trade agreement with Indonesia on Tuesday. The deal represents another step in the administration's efforts to improve trade terms with global partners.
Despite Indonesia not ranking among the top 15 U.S. trading partners, bilateral trade has shown growth. In 2024, total trade reached nearly $40 billion, with U.S. exports increasing by 3.7% and imports rising by 4.8%, resulting in an $18 billion U.S. trade deficit.
As the U.S.-Indonesia trade relationship strengthens, the European Union is preparing to implement retaliatory measures, targeting $84.1 billion worth of U.S. goods. This comes as a response to potential tariffs from Washington, which President Trump has threatened will be up to 30% on EU imports.
(With inputs from agencies.)
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