By Andrew Moran

The United States has reached trade agreements with Indonesia and the Philippines, U.S. President Donald Trump announced on social media.

With the Aug. 1 deadline approaching, the administration is reaching new deals. First, following through on last week’s announcement, Trump confirmed the details of the U.S.–Indonesia trade agreement.

Terms of the deal would see Indonesia lower tariffs to 0 percent on 99 percent of U.S. exports and eliminate non-tariff barriers, the president said in a July 22 Truth Social post. Indonesian products entering the United States would be subject to a reciprocal tariff rate of 19 percent, down from the previously announced blanket rate of 32 percent. Indonesia will also supply the United States with precious critical minerals and purchase Boeing aircraft, U.S. farm products, and U.S. energy.

“This deal is a huge win for our automakers, tech companies, workers, farmers, ranchers, and manufacturers,” Trump said. The announcement came hours after Trump and the Philippines struck a trade and military deal during a meeting between Trump and Philippines President Ferdinand Marcos Jr. at the White House. It also removes import restrictions and licensing agreements and establishes measures to resolve long-standing intellectual property issues.

The two sides will further finalize commitments on digital trade, services, and investment.   Indonesia will, as part of the trade deal, implement a ban on forced labor imports and eliminate rules that restrict workers’ and unions’ freedom of association and collective bargaining rights. The U.S.–Indonesian trade agreement is projected to be worth approximately $50 billion to the United States, the White House confirmed. Leaders from Indonesia agreed to several significant commitments, including the removal of pre-shipment inspections, exemption from local content requirements for U.S. firms, and acceptance of U.S. federal motor vehicle safety standards. Additionally, the deal will include transshipment rules to ensure that China does not exploit the agreement’s benefits.

According to the White House, transshipped goods with high levels of content from nations with higher tariff rates would face a 40 percent levy. Many of the provisions resolve grievances outlined in the National Trade Estimate Report, released by the U.S. Trade Representative’s Office in March.

If Indonesia does not adhere to the agreement’s conditions, U.S. officials say, the president possesses the authority to modify the deal, including tariffs. Senior administration officials say that the deal aims to strike a balance in trade and enhance U.S. access to the Indonesian market. “We’re trying to improve the terms of trade so we can eliminate the trade deficit,” they told reporters on a press call.

Last year, the U.S. goods trade deficit with Indonesia was $17.9 billion, representing an increase of more than 5 percent from 2023.

US Finalizing Deal With the Philippines

The latest details of the U.S.–Indonesia trade agreement come as Trump confirmed that the Philippines is next in line to finalize a deal. After welcoming Philippines President Ferdinand Marcos Jr. to the White House on July 22, Trump announced on Truth Social that the Southeast Asian country will open its market to U.S. products with zero percent tariffs.

In exchange, Filipino exports to the United States will face a 19 percent levy, slightly lower than the 20 percent proposed in Trump’s letter earlier this month. “It was a great honor to be with the president. He is highly respected in his country, as he should be. He is also a very good, and tough, negotiator. We extend our warmest regards to the wonderful people of the Philippines!” Trump wrote on his social media platform. The deals with Indonesia and the Philippines mark the second and third deal between the United States and its trading partners since Trump sent letters to dozens of countries ahead of the Aug. 1 deadline.

Next Up: China Meanwhile, Treasury Secretary Scott Bessent stated on July 22 that the Aug. 12 trade deadline with China is likely to be extended. “I think trade is in a very good place with China,” Bessent said in an interview with Fox Business. “So I think we’ve actually moved to a new level with China, where it’s very constructive,” he continued. “We’re going to be able to get a lot of things done, now that trade has kind of settled in at a good level.” Bessent also noted that the administration wants to discuss sanctioned Iranian and Russian crude oil and slow the “glut of manufacturing that they’re doing and concentrate on building a consumer economy.”

Swedish Prime Minister Ulf Kristersson confirmed on X that his country would host the next round of negotiations between the world’s two largest economies. Commerce Secretary Howard Lutnick, speaking with CBS’s “Face the Nation” on July 20, stated that the United States plans to impose a baseline 10 percent tariff on small countries in Latin America, the Caribbean, and Africa. Bigger economies “will either open themselves up or they’ll pay a fair tariff to America,” Lutnick said. He noted that Aug. 1 was a hard deadline.