The tariff clock is ticking on a number of U.S. trading partners. The deadline for negotiations is now about two weeks away — but there's still some confusion on deals that have been announced as recently as this week.
Indonesia's president is calling this weekʻs trade deal with the United States the start of “a new era of mutual benefit.”
The basic numbers look better than they did several days ago. Tariffs on exports to the United States will be at 19% — down from a proposed 32% but higher than theyʻve been.
U.S. exporters won't face any tariffs for products they sell in Indonesia.
Beyond that, many details are unclear.
Local news coverage in Southeast Asia includes some pointed questions about what exactly the Jakarta government has gotten itself into by agreeing to buy certain U.S. goods.
President Trump says part of the deal includes the purchase of 50 Boeing airplanes.
But here's a complication. The presumed buyer of those aircraft would be the countryʻs national carrier, Garuda Indonesia.
That is a financially struggling company, with a first-quarter loss of more than $75 million.
That surpassed its losses for all of the previous fiscal year. Then there's also energy — Trump mentioned a commitment for Indonesia to buy some $15 billion of U.S. energy exports.
Indonesia has already increased its imports of U.S. liquified natural gas, but also wants to reduce its dependency on fossil fuels.
