Source: Supply Chain Dive; Supply Chain Dive
Date: 22nd July 2025

Proposed agreements outline tariffs, market access, and procurement plans, but final confirmation is still pending.

The United States has announced preliminary framework agreements with Indonesia and Japan as part of its country-specific trade strategy.

The proposed U.S.-Indonesia deal includes a 19% tariff on Indonesian imports and Indonesia’s removal of levies on 99% of U.S. products. It also outlines Indonesia’s commitment to procure billions in U.S. agricultural, energy, and aviation goods and remove restrictions on critical mineral exports. However, both nations still need to finalise and sign the agreement in the coming weeks.

In a separate announcement, the U.S. outlined the terms of a deal with Japan that would impose a 15% tariff on Japanese imports, including automobiles and parts, while granting broader market access for American products, such as rice and vehicles. Japanese officials confirmed that an agreement in principle had been reached, but official documentation from the White House is still pending. Notably, steel and aluminium tariffs remain unchanged.

These frameworks come amid broader U.S. efforts to recalibrate global trade relations.

Similar negotiations are ongoing with Vietnam and China, with some tariff reductions temporarily paused until mid-August.

While the frameworks signal progress, the deals remain incomplete until all terms are formally ratified and signed by both sides.