July 07, 2025
Indonesia Close to Big U.S. Trade Deal Before Trump’s Tariff Deadline

Market Commentary
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President Donald Trump has confirmed that his administration will begin sending out tariff letters to trading partners starting Friday, setting new unilateral tariff rates that could range from 10% to as high as 70%.

These tariffs would take effect on August 1, with countries expected to begin paying from that date.

The move comes after months of Trump warning that if countries fail to reach bilateral trade deals, the US would act unilaterally.

Some deals have already been secured, including with Vietnam, which agreed to a 20% import tariff.

However, others such as Japan, South Korea, and the EU, are still negotiating, with Trump suggesting that countries not cooperating could face tariffs of 30%, 35%, or even 70%.

Indonesia is also close to signing a major trade deal with the U.S. that would remove import tariffs on over 1,700 American products, including electronics, cars, steel, and agriculture.

The goal is to avoid a possible 32% tariff and get a better deal than Vietnam, which recently agreed to a 20% rate.
 

In the critical minerals sector, Indonesia plans to give US buyers special access, check foreign ownership more closely, and work with the US to ensure a safer and more transparent supply chain.

These steps led to US wants to reduce their dependence on nickel from China.

The US is Indonesia’s second biggest export market, so this deal is very important.

Merdeka Battery Materials (MBMA), Aneka Tambang (ANTM), and Vale Indonesia (INCO) are expected to benefit from stronger demand and new US partnerships.
 

 

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