President Donald J. Trump has struck a significant reciprocal trade agreement with Indonesia, marking yet another stride in the relentless quest of the Trump Administration to establish a trade policy that prioritizes American interests. This deal aims to dismantle approximately 99% of tariff barriers affecting a broad spectrum of U.S. industrial, food, and agricultural exports, thereby facilitating new market access and eliminating non-tariff barriers. It stands as the latest triumph for American workers, farmers, and manufacturers.
The trade agreement has been met with widespread acclaim across various sectors of American industry:
Kevin Dempsey, President and CEO of the American Iron and Steel Institute: “We are optimistic about the newly announced framework aimed at negotiating the removal of Indonesia’s export restrictions on critical minerals like nickel, which is vital for stainless steel production. The existing export ban and other constraints on nickel, coupled with Indonesia’s close associations with Chinese steel producers under the Belt and Road Initiative, have created significant distortions in the global nickel market, adversely affecting U.S. steel producers. We look forward to collaborating with USTR to address these issues.”
Morgan Reed, President of the Association for Competitive Technology: “This represents yet another victory for small tech developers in the U.S. For years, the App Association and its members have voiced concerns about Indonesia’s inclusion of software and digital goods in their tariff framework, among other digital trade barriers. We express our gratitude to USTR and the Administration for their unwavering efforts on behalf of small tech firms and look forward to strengthening American competitiveness on the global stage. Additionally, we commend the Indonesian government for committing to support a World Trade Organization agreement that prohibits taxes or customs duties on digital service transmissions.”
Aaron Cooper, Senior Vice President of the Business Software Alliance: “The U.S.-Indonesia trade agreement represents a monumental advance in digital trade policy. Its provisions to eliminate tariffs on intangible digital products, ensure cross-border data transfers, and promote the permanent extension of the moratorium on digital customs duties will broaden access to digital services and foster technological adoption. This agreement sends a robust message to the global economy and industries reliant on open and secure digital trade, reflecting key reforms that have been central to BSA’s agenda for nearly a decade.”
Caleb Ragland, President of the American Soybean Association: “We are grateful for President Trump’s and his administration’s commitment to maintaining market access for U.S. soybeans in Indonesia, alongside USTR’s pledge to tackle non-tariff barriers in that market. We eagerly anticipate similar agreements that not only reduce tariffs but also ensure sustained and enhanced market entry for U.S. agriculture.”
Jonathan McHale, Vice President of the Computer and Communications Industry Association: “The framework agreement announced for addressing various trade barriers in Indonesia, including tariffs on digital products, restrictions on cross-border data flows, and local content mandates for communications devices, is a vital and encouraging step toward reforming one of the most challenging markets for U.S. suppliers. We look forward to a binding agreement that not only addresses these barriers but also outlines a clear path to resolving all remaining challenges.”
Jaime Castaneda, Executive Director of the Consortium for Common Food Names: “The potential for Indonesia to adopt a more transparent and equitable approach to Geographical Indications (GIs) would significantly advance the global effort to preserve the use of common food names like parmesan and feta. We commend U.S. negotiators for prioritizing this issue, especially at a time when the European Union is seeking to expand its GI restrictions in burgeoning dairy markets, effectively sidelining the U.S. We will diligently collaborate with the U.S. government to hold Indonesia accountable to its commitments regarding common names.”
Becky Rasdall Vargas, Senior Vice President of the International Dairy Foods Association: “We are thrilled and invigorated by today’s announcement regarding improved access for U.S. dairy exports to Indonesia. Indonesia serves as a crucial trading partner in a region vital to U.S. dairy exports, which is on an upward trajectory. This announcement signifies the most substantial improvement in access for U.S. dairy exporters in over a decade, positioning us to remain globally competitive. We sincerely appreciate the Administration’s efforts and the negotiators who achieved this positive outcome for U.S. dairy.”
Mike Seyfert, President and CEO of the National Grain and Feed Association: “America’s grain and feed industry is thankful to President Trump and his negotiating team for advancing a bold and strategic trade framework with Indonesia that yields significant benefits for U.S. agriculture. This agreement opens the door to billions in new exports—covering soybeans, wheat, and other essential commodities—while abolishing tariffs and reducing bureaucratic hurdles that have historically impeded U.S. producers. We anticipate swift finalization and implementation of this deal and are eager to assist the Trump Administration in opening new markets and dismantling unfair trade barriers.”
Gregg Doud, President and CEO of the National Milk Producers Federation: “This appears to be a significant victory for U.S. dairy. We commend the Trump Administration for securing an agreement that promises real benefits for our dairy farmers. We are pleased to learn that this framework removes hurdles to trade and will facilitate growth in dairy sales within one of the world’s most populous markets. The National Milk Producers Federation looks forward to reviewing the agreement details and collaborating with the Administration to ensure Indonesia fulfills its commitments.”
Devin Mogler, President and CEO of the National Oilseed Processors Association: “We applaud the Trump Administration for prioritizing U.S. farmers in this trade agreement with Indonesia, particularly regarding soybean meal purchases. Members of NOPA have invested over $6 billion to enhance U.S. soybean crushing capacity by more than 25% since 2023 to meet escalating demand for food, feed, and biofuel applications, thereby adding value to the crops cultivated by our remarkable U.S. farmers. Securing access to expanding soybean meal markets like Indonesia is crucial for maintaining our farmers’ competitiveness against global rivals.”
Geoff Cooper, President and CEO of the Renewable Fuels Association: “We are thankful to President Trump and his team for ensuring that U.S. agriculture and renewable fuels are prominently included in these framework agreements. These deals will ultimately facilitate access to important Asian markets and enable greater entry for American agricultural products, renewable fuels, and by-products like distillers grains. This administration clearly recognizes the pivotal role American farmers and renewable fuel producers can play in feeding and fueling the world, and we applaud President Trump’s efforts to secure fair and reciprocal agreements on a global scale. Removing barriers to equitable trade bolsters our rural economy and the United States as a whole.”
The Meat Institute: “Members of the Meat Institute celebrate the efforts of @realdonaldtrump and @USTradeRep in negotiating a deal with Indonesia that opens this crucial market for meat and poultry. We eagerly await the specifics of the deal and look forward to ongoing efforts to eliminate remaining trade barriers in other Southeast Asian markets.”
Krysta Harden, President and CEO of the U.S. Dairy Export Council: “Yesterday’s announcement is a crucial step toward enhancing opportunities for U.S. dairy exporters. This deal is set to fortify our long-term partnership with Indonesia while granting U.S. dairy companies a fairer chance to compete. Although we will need to verify that Indonesia honors its commitments, the removal of both tariff and non-tariff barriers is precisely what our industry requires to generate new momentum for U.S. dairy exports and foster deeper collaboration with a vital Southeast Asian partner.”
Ryan LeGrand, President and CEO of the U.S. Grains Council: “The U.S. Grains Council commends the Trump Administration on its historic trade agreement with Indonesia, which will enhance trade for both nations and remove tariffs on the products we represent. In the 2023-24 marketing year, Indonesia emerged as the fourth largest importer of U.S. distillers dried grains with solubles, totaling 1,024,000 metric tons. This equates to a nearly $299 million market, and we hope that the deal announced today will not only enhance these figures but also pave the way for broader access to our diverse range of offerings.”
Dan Halstrom, President and CEO of the U.S. Meat Export Federation: “USMEF appreciates USTR’s relentless efforts to negotiate a significant agreement with Indonesia that tackles numerous challenging issues. Indonesia offers incredible potential, with the opportunity for U.S. beef estimated at $250 million annually. However, current exports are minimal due to various trade barriers. We are encouraged by the highlights outlined in the U.S.-Indonesia joint statement, which include resolving vital issues like import licensing, the commodity balance policy, and Indonesia’s burdensome plant-by-plant approval process. Both U.S. beef and pork have been restricted by these longstanding barriers. Indonesian importers and consumers are demanding U.S. red meat, and we look forward to the swift conclusion of these negotiations and expanded export possibilities.”
Mike Spier, President and CEO of U.S. Wheat Associates: “We are enthusiastic and thankful for this comprehensive government commitment, which includes the agreement reached earlier this month between Indonesian flour millers and the U.S. wheat industry. We extend our gratitude to the Trump Administration, the U.S. Trade Representative, and the U.S. Department of Agriculture’s Foreign Agricultural Service (USDA-FAS) for their unwavering support on behalf of American wheat farmers.”
