US President Donald Trump has once again used his tariff trump. This time Indonesia has been targeted. On July 15, Trump announced that he had signed a new trade agreement with Indonesia. Under this deal, 19% tariffs will be levied on goods coming from Indonesia to America, while American goods will get entry without any tax in Indonesia. But the question is whether this tariff war of Trump is also ringing alarm bell for India?
Deal with Indonesia, Trump’s Masterstroke
Talking to reporters at the White House, Trump said, Indonesia will give 19% tariff, and we will not pay a penny tax. We are getting access to their entire market. The deal came when Trump recently sent letters to many countries and threatened to increase the tariff from 1 August. Among these countries, Indonesia was also a warning of 32% tariff in April. But now Indonesia has confirmed the deal on 19% tariff. This is the first country to compromise so soon after Trump’s threat.
There is not just a tariff in this deal. Indonesia has promised to buy $ 15 billion energy goods, $ 4.5 billion agricultural products and 50 Boeing Jets from the US. Also, if another country will try to save the tariff by sending goods to Indonesia, then it will have to pay heavy tax. It is clear from Indonesia’s move that it came under the pressure of Trump. But this deal is a lesson for India how dangerous Trump’s tariff game can be.
How did Indonesia accept?
Indonesia Minister Airlanga Hartarto met US officials last week. Indonesia had offered to end tax or reduce its 70% US imports. Also offered large deals in energy, minerals, agriculture and defense sectors. But Trump did not like it enough. Eventually, Indonesia had to agree on 19% tariff. Now both countries are preparing a joint statement, in which the nuances of the deal will be revealed.
When is India’s number in tariff war?
Trump’s tariff war is not new. He has earlier announced such deals with Vietnam, Britain and China, although most of them have not yet been completely clear. For example, there was talk of imposing 20% tariffs with Vietnam, but the government there was not fully aware of it.
Now the question is when India’s turn will come. Trump has also warned India of tariff and if India did not make any compromise in time, then from August 1, 2025, heavy tariffs can be implemented on Indian goods. Business relations between India and America have already been stressful, and Trump has often been saying that countries like India take advantage of America. In such a situation, India will have to be cautious, otherwise the next target can be India.
Recently, a team of officers led by Special Secretary of Commerce Department Rajesh Aggarwal has reached Washington again regarding the Indo-US trade deal. They are trying to solve the problem related to agriculture and dairy products before the deadline of 1 August 2025 so that the deal can be agreed. Union Commerce and Industry Minister Piyush Goyal has also said that talks about the proposed trade deal with America are going on fast.