NASHVILLE, TN – Indonesia has committed to removing tariffs on nearly all U.S. agricultural goods under a new trade agreement announced this week.
The deal eliminates tariffs on 99% of U.S. industrial and agricultural imports, including soybeans, cotton, wheat, and soybean meal. Indonesia has also agreed to remove regulatory barriers like inspection requirements and import licensing that previously slowed down U.S. ag shipments.
The move is expected to increase U.S. exports of soy and feed grains to the region, which is a key growth market for livestock and poultry production. Analysts say the agreement could bring more than $4 billion in annual ag export potential.
In return, the U.S. will apply a 19% tariff on Indonesian imports — lower than previously proposed. The deal is part of a broader U.S. push to rebalance trade relationships in Asia and reduce trade deficits while supporting American farmers.