US-Indonesia Reciprocal Trade Agreement Signed
Analysis based on 18 articles · First reported Feb 19, 2026 · Last updated Feb 20, 2026
The trade agreement between Indonesia and the United States is expected to positively impact both economies by boosting trade, especially in agricultural commodities and critical minerals. This deal could also alleviate supply-chain disruptions for U.S. manufacturers and strengthen economic security for both nations.
Indonesia and the United States announced a reciprocal trade agreement, with Indonesia eliminating tariffs on 99% of American goods and the U.S. maintaining 19% tariffs on most Indonesian goods. The agreement also includes Indonesia addressing non-tariff barriers and removing restrictions on critical mineral exports to the U.S. Concurrently, Indonesian and U.S. companies finalized 11 deals worth $38.4 billion, covering purchases of U.S. soybeans, corn, cotton, and wheat, cooperation in critical minerals and oil field recovery, and joint ventures in computer chips. The agreement was announced during Indonesian President Prabowo Subianto's visit to Washington for the inaugural meeting of President Donald Trump's Board of Peace, where Prabowo also pledged Indonesian troops for a Gaza stabilization force. This trade deal is seen as a strategic move by the United States to diversify its critical mineral supply chains and counter China's influence.
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