Trump announces a new trade deal with Indonesia to reduce the U.S. trade deficit, while the EU prepares tariffs on $84 billion in U.S. goods amid stalled negotiations and rising global trade tensions.
15th July 2025 08:18 PM 
U.S. President Donald Trump on Tuesday announced a new trade agreement with Indonesia, aimed at narrowing America’s growing trade deficit and averting steep tariffs he threatened just a week ago.
“Great deal, for everybody, just made with Indonesia. I dealt directly with their highly respected President. DETAILS TO FOLLOW!!!” Trump posted on Truth Social.
While specific terms of the agreement remain undisclosed, Indonesia’s Coordinating Ministry for Economic Affairs confirmed a joint statement is being prepared, including provisions for reciprocal tariffs, non-tariff commitments, and commercial arrangements.
The U.S. logged nearly $40 billion in total trade with Indonesia in 2024, with an $18 billion trade deficit. Indonesia’s key exports to the U.S. include palm oil, electronics, footwear, car tires, frozen shrimp, and natural rubber, according to U.S. Census Bureau data.
Just last week, Trump had threatened Indonesia with a 32% blanket tariff beginning August 1. Similar threats were sent to over 20 other countries including Canada, Japan, and Brazil with tariff rates ranging from 20% to 50%. A 50% tariff on copper was also included in the broader plan.
Trump’s administration previously promised a “90 deals in 90 days” blitz, but concrete outcomes have been limited. Framework agreements have been announced with Vietnam and the United Kingdom, and an interim arrangement with China has delayed further tariff escalation as talks continue.
Meanwhile, the European Commission has signaled it is ready to impose retaliatory tariffs on €72 billion ($84.1 billion) worth of U.S. goods including Boeing aircraft, bourbon whiskey, and automobiles if current negotiations with Washington collapse.
The threatened tariffs, drafted before Trump’s latest tariff wave, are now being revisited as tensions grow between the U.S. and its largest trading partners. Despite hopes for a deal, the EU is clearly preparing for escalation if progress stalls.
“We are ready for constructive dialogue, but also prepared to defend European interests if necessary,” said EU Trade Commissioner.
This brewing conflict, coupled with Trump’s aggressive trade strategy, could further shake global supply chains already grappling with inflation and economic realignment driven by AI and clean energy demands.
