Indonesia-U.S. Trade Deal Amid Tariff Rejection
Analysis based on 8 articles · First reported Feb 21, 2026 · Last updated Feb 22, 2026
The trade deal between Indonesia and the United States, reducing tariffs on Indonesian exports, is expected to positively impact Indonesian industries like palm oil, coffee, and cocoa. The U.S. Supreme Court's rejection of global tariffs introduces uncertainty for broader U.S. trade policy but the bilateral deal is expected to hold.
Indonesian President Prabowo Subianto announced that Indonesia is prepared for all possibilities following the U.S. Supreme Court's rejection of President Donald Trump's global tariffs. This development comes after Prabowo Subianto and his ministers visited Washington D.C. to attend the inaugural meeting of Donald Trump's Board of Peace and to sign a bilateral trade deal. This agreement significantly cuts tariff rates on Indonesian exports to the United States from 32% to 19%. Indonesia's chief negotiator, Airlangga Hartarto, confirmed that the trade deal remains in force and requested the United States maintain previously agreed tariff exemptions for key Indonesian exports such as palm oil, coffee, and cocoa, indicating a different treatment for countries with signed trade deals.
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