From AFOA General Counsel, Olsson Frank Weeda
U.S. and Indonesia Trade Deal
On July 15, 2025, President Donald Trump announced a preliminary trade agreement with Indonesia. Under the deal, Indonesian goods exported to the U.S. will face a 19% tariff (as opposed to 32% announced in the recent tariff letter), while U.S. exports to Indonesia will reportedly enter tariff-free.
President Trump characterized the agreement as providing “full access” for American exporters, particularly in sectors where market entry had previously been constrained. The deal also includes substantial purchase commitments from Indonesia, including $15 billion in U.S. energy, $4.5 billion in agricultural products, and 50 Boeing aircraft. Indonesia has not yet formally confirmed the full scope of the agreement, though senior officials have indicated satisfaction with the outcome and are preparing a joint statement to clarify reciprocal tariff terms and commercial arrangements. Indonesia’s top exports to the U.S. include electronics, apparel, footwear, and palm oil. The agreement may have implications for U.S. access to strategic materials such as copper, which President Trump highlighted as a valuable Indonesian export. Further details are expected ahead of the August 1 expiration of the suspension of country-specific reciprocal tariffs.
Initiation of Section 301 Investigation of Brazil’s Unfair Trading Practices
In addition to the 50% tariff rate on Brazilian-origin imports announced last week, on July 15, 2025, the Office of the United States Trade Representative (USTR) formally initiated a Section 301 investigation into Brazil’s alleged unfair trading practices under the Trade Act of 1974. The investigation focuses on a broad range of allegations, including Brazil’s treatment of U.S. digital trade and electronic payment services, its use of preferential tariff structures favoring other countries, deficiencies in anti-corruption enforcement, weak protection of intellectual property rights, increased tariffs on ethanol imports from the U.S., and Brazil’s failure to curb illegal deforestation. Ambassador Greer, citing President Trump’s directive (tariff letter issued to Brazil last week), emphasized that the probe responds to long-standing trade barriers outlined in the National Trade Estimate Report and aims to determine whether Brazil’s policies are unreasonable or discriminatory and burden U.S. commerce. USTR has requested consultations with Brazil and will hold a public hearing on September 3, 2025. Interested parties wishing to submit comments or appear at the hearing must do so by August 18, 2025. Additional details and submission dockets are available via the Federal Register.