The U.S. government has announced a trade and tariff agreement with Indonesia aimed at reducing tariffs on Indonesian exports to the U.S. and easing restrictions on critical mineral exports. Under the deal, the U.S. will lower tariffs on certain Indonesian products from the planned 32% to 19%. However, products suspected of being rerouted through third countries to avoid tariffs will face a punitive 40% rate. Key provisions of the agreement include: Indonesia will eliminate 99% of its tariff barriers on U.S. industrial, tech, agricultural, and energy products, opening its market to American goods; Indonesia will also supply the U.S. with critical minerals such as copper, cobalt, and nickel, and will purchase Boeing aircraft and U.S. agricultural products; Pre-shipment inspection requirements on U.S. imports will be lifted; Indonesia will accept U.S. federal motor vehicle safety standards; The country will abandon plans to impose a data flow tax, which had previously been criticized by the U.S. as a revenue grab targeting American companies. According to the White House, the agreement is expected to bring the U.S. at least $50 billion in new market access and purchase commitments. The deal is set to be finalized in the coming weeks. This agreement is part of a broader push by the U.S. to secure trade deals before a new round of tariff hikes takes effect on August 1. Similar agreements have recently been announced with the UK, Vietnam, and the Philippines.