US and Indonesia sign deal to cut tariffs to 19%

President Donald Trump and his Indonesian counterpart Prabowo Subianto have finalised an agreement to lower US tariffs on the South East Asian country to 19% from 32%.

Under the deal, Indonesia will cut trade barriers on more than 99% of American imports - including agriculture, healthcare, seafood, technology and car-related goods - the White House said on Thursday.

Washington said it granted tariff exemptions on some Indonesian goods, including certain clothing and textiles that are produced with cotton and man-made materials from the US.

US trade representative Jamieson Greer said the agreement will "breaks down trade barriers" while advancing the interests of the American people.

Indonesia's President Prabowo signed the deal on Thursday during a visit to Washington to attend the first meeting of the Trump-led "Board of Peace" to discuss the reconstruction of Gaza.

The White House said that Indonesia will open up its markets by accepting US car safety and emissions guidelines, as well as American food and drug standards for its medical devices and pharmaceutical products.

Indonesia will also ease barriers on American agricultural and technology goods being sold in its market.