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 \u201ctranshipped\u201d goods.<\/p>\n
The more complete framework of the deal is further confirmation of an agreement with America\u2019s 23rd largest trading partner that will avert 32% tariffs that Trump threatened previously. It also stipulates that \u201cIndonesia is going to drop its tariffs to 0% on over 99% of its trade,\u201d a senior White House official said Tuesday.<\/p>\n
The official added that the deal includes the elimination of non-tariff barriers that Trump\u2019s 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.<\/p>\n
The exact definition of how Trump defines transshipped goods has been a matter of some debate in recent weeks<\/a>. 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.<\/p>\n