July 22 (Reuters) – Indonesia will drop tariffs to zero on more than 99% of its trade with the United States and will also eliminate all non-tariff barriers for American goods in a deal that cuts threatened U.S. tariffs on Indonesian products to 19% from an initial 32%, a senior Trump administration official said on Tuesday.
Indonesia will immediately drop its plans to levy tariffs on internet data flows and will support renewal of a longstanding World Trade Organization moratorium on e-commerce duties, the official told reports on a conference call held a week after the deal was first announced on July 15.
Indonesia also will remove recently enacted pre-shipment inspection and verifications of U.S. exports, which have posed problems for U.S. agricultural exports and contributed to a growing U.S. farm trade deficit, the official said.
In a win for U.S. automakers, the official said that Indonesia has agreed to accept U.S. Federal Motor Vehicle Safety Standards for vehicles exported from the United States to the growing country of 280 million people. Indonesia also has agreed to remove export restrictions on critical minerals and remove local content requirements products using these commodities shipped to the U.S.
((Reporting by Andrea Shalal and David Lawder in Washington; Editing by Dan Burns))
Keywords: USA TRUMP/TARIFFS INDONESIA
