JAKARTA – Indonesia’s new trade deal with the Trump administration offers tariff certainty through 2029. But is this assurance worth the potential price? The pact guarantees Indonesia won’t face tariffs exceeding 19% on its exports to the U.S.
This trade agreement provides crucial stability amid global economic flux, but questions linger about the long-term implications for Indonesia.
Trade Deal Offers Certainty Amid Volatility
The wisdom of making deals during turbulent times echoes as nations eye agreements with the Trump administration. Four countries have already inked deals, with Indonesia now joining their ranks. The country may soon find itself regretting this pact.
The core of the agreement provides a safeguard. Indonesia’s exports to the U.S. will not be subject to tariffs higher than 19%. This certainty extends all the way to 2029. In an era of unpredictable trade relations, this kind of guarantee is attractive.
Did you know? This agreement comes as several countries are actively pursuing trade deals with the current U.S. administration.
The allure of such deals is undeniable. It promises a degree of predictability in a world where trade policies can shift dramatically. However, the long-term consequences of these agreements often come into sharper focus later.
The Indonesian government’s eagerness to strike a deal highlights the perceived benefits of securing favorable trade terms. But the proverb serves as a stark reminder: be careful what you wish for.
What is the main benefit of Indonesia’s new trade agreement? The agreement guarantees Indonesia will not face tariffs exceeding 19% on its exports to the U.S. through 2029, providing export certainty.
