Indonesia and US sign trade deal to slash import tariffs and exempt palm oil
Indonesia and the United States signed a trade deal today to cut import levies to 19 percent. The pact exempts palm oil and targets critical mineral growth.
Insights:
The Government of Indonesia and the United States government finalized a trade deal on February 20, 2026, that reduces U.S. levies on goods shipped from Indonesia 
ID to 19% from a previous rate of 32%. Finalized and signed at a high-level leaders' meeting involving President Prabowo Subianto and President Donald Trump, the agreement also exempts the Palm oil sector and several other commodities from specific trade barriers. This substantial tariff reduction is viewed as a significant development that aligns the tariff rate for the United States 
US with other Southeast Asian trade deals and follows market concerns for Indonesia that emerged earlier in 2026.
ID to 19% from a previous rate of 32%. Finalized and signed at a high-level leaders' meeting involving President Prabowo Subianto and President Donald Trump, the agreement also exempts the Palm oil sector and several other commodities from specific trade barriers. This substantial tariff reduction is viewed as a significant development that aligns the tariff rate for the United States US with other Southeast Asian trade deals and follows market concerns for Indonesia that emerged earlier in 2026.
