US and Indonesia Reach Trade Deal: Indonesia to Cancel 99% Tariffs and Nickel Export Restrictions

July 25, 2025 – The US business community has recently welcomed the tariff agreement reached between the United States and Indonesia. The US government stated that business leaders view the deal as a significant breakthrough in trade policy during the Trump administration.

According to a White House statement released on July 23, 2025, Indonesia will eliminate approximately 99% of its tariff barriers on US industrial goods, food, and agricultural products. Kevin Dempsey, President and CEO of the American Iron and Steel Institute (AISI), highlighted the critical importance of the trade agreement, which includes Indonesia lifting export restrictions on minerals like nickel. He stated that Indonesia's previous nickel export ban had created imbalances in the global nickel market, severely harming US steel producers.

Morgan Reed, President of the American Competitiveness Technology Association, noted that the Indonesian government had imposed high tariffs for years on digital equipment such as software. He said the agreement's conclusion represents a major opportunity for small US tech companies. The National Corn Growers Association also expressed support, emphasizing that Indonesia is a vital export market for US corn.

Jonathan McHale, Vice President of the Computer & Communications Industry Association (CCIA), stated that the agreement effectively addresses trade barriers in Indonesia, including tariffs on digital products, restrictions on cross-border data flows, and localization requirements for communications equipment. However, he called for further negotiations to eliminate other trade obstacles in the market.