Trump strikes deal with Japan, but EU digs in with over $100B counterattack

President Trump and his team released new details of a pact announced last week with Indonesia, confirming plans for a 19% tariff on the country and adding a 40% rate on any “transhipped” goods.

The more complete framework of the deal is further confirmation of an agreement with America’s 23rd largest trading partner that will avert 32% tariffs that Trump threatened previously. It also stipulates that “Indonesia is going to drop its tariffs to 0% on over 99% of its trade,” a senior White House official said Tuesday.

The official added that the deal includes the elimination of non-tariff barriers that Trump’s team say hinders American companies, including in areas like pre-shipment inspection requirements, motor vehicle safety standards, and restrictions around US medical devices and pharmaceuticals.

The exact definition of how Trump defines transshipped goods has been a matter of some debate in recent weeks. The deal with Indonesia includes goods not just re-labeled but made with a significant portion of components from a third country and then assembled in Indonesia. It’s a provision also included in a recent deal with Vietnam and is clearly aimed at China.

Indonesian negotiators previously confirmed that a deal had been struck but not all details, with the country president’s spokesperson telling Reuters the negotiations had been “an extraordinary struggle.”