U.S. and Indonesia Finalize Trade Deal
Trade Update • Feb. 20, 2026
Key Points
- Indonesia removes tariffs on over 99% of U.S. exports across agriculture, manufacturing, ICT, automotive, chemicals, and health products.
- The U.S. maintains a 19% reciprocal tariff on imports from Indonesia, with certain products eligible for 0%.
- Non-tariff barriers will also be removed, including local content rules, certification, labeling, pre-shipment requirements, and acceptance of U.S. safety and FDA standards.
- U.S. agricultural products gain improved access, with transparent licensing and fair treatment of geographical indications like meats and cheeses.
- Commercial deals worth $33 billion cover energy, aerospace, agriculture, and mining, including Freeport-McMoRan’s Grasberg expansion.
On February 19, 2026, the U.S. finalized a landmark trade deal with Indonesia to expand market access for U.S. exporters. The agreement eliminates tariffs on nearly all U.S. goods, addresses non-tariff barriers, and strengthens digital trade and intellectual property protections. Both countries committed to improving supply chain resilience, export controls, and labor standards. The deal also supports $33 billion in commercial transactions across energy, aerospace, agriculture, and critical minerals, benefiting American workers and companies.
The White House also published a joint statement on implementing the new agreement.
Tariffs
- Indonesia removes tariffs on over 99% of U.S. exports.
- U.S. maintains a 19% reciprocal tariff rate on imports from Indonesia, with exceptions receiving 0% tariffs.
- Textile and apparel imports from Indonesia may receive 0% tariffs under volume-specific provisions.
Non-Tariff Measures
- U.S. safety, emissions, and FDA standards will be accepted.
- Indonesia will remove certification, labeling, and pre-shipment requirements.
- Steps will address long-standing intellectual property issues.
Additional Commitments
Agriculture and Food Products
- Exemption from import licensing regimes.
- Transparent treatment of geographical indications for meats, cheeses, and other products.
- Prevention of barriers to U.S. agricultural exports.
Digital Trade
- Elimination of HTS tariffs on intangible products.
- Support for WTO moratorium on customs duties for electronic transmissions.
- Fair access for U.S. electronic payment service providers.
Supply Chain and Critical Minerals
- Cooperation to enhance supply chain resilience and prevent duty evasion.
- Removal of export restrictions on industrial commodities, including critical minerals.
- Freeport-McMoRan MOU to expand operations at Grasberg, expected to generate $10B annually.
Labor and Compliance
- Forced labor import ban to be implemented.
- Removal of legal restrictions limiting worker association and collective bargaining rights.
Commercial Deals
- Energy: Purchases of approximately $15 billion of U.S. energy commodities.
- Aerospace: Procurement of commercial aircraft and aviation-related goods and services worth $13.5 billion, including Boeing aircraft.
- Agriculture: Purchases of over $4.5 billion of U.S. agricultural products.
How GHY Can Help?
GHY specializes in helping businesses navigate and reduce the impacts of tariffs through strategic solutions tailored to their needs. Our experts can audit your supply chain to identify inefficiencies, uncover cost-saving opportunities, and ensure compliance with evolving trade regulations. We also employ tariff engineering techniques to optimize product classification and sourcing strategies, minimizing duty exposure and maximizing profitability.
By partnering with GHY, your business gains access to the tools and expertise needed to streamline operations and stay competitive in a challenging trade environment.
Contact Us Today! Booking a Meeting, email consult@ghy.com, or call +1 (800) 667-0771.
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