US Agrees Tariff Exemption Plans for Indonesian Palm Oil, Cocoa, Rubber

The United States, under President Donald Trump, has agreed in principle to exempt Indonesian exports of palm oil, cocoa, and rubber from a 19 percent tariff imposed in August 2025, pending a final agreement. This exemption targets products not produced in the U.S. and is intended to be zero or close to zero, although no timeline has been set due to ongoing U.S. tariff negotiations with other countries. Discussions also included potential U.S. investments in Indonesian fuel storage involving the sovereign wealth fund Danantara and state energy firm Pertamina. Indonesia, the world's largest palm oil exporter, was among the first to strike a tariff deal with the U.S., offering substantial investments and purchases of American goods in exchange for tariff relief and promising zero tariffs on nearly all American imports. This development is part of a broader U.S. trade policy that, while increasing tariffs on some metals like aluminum and steel, exempts critical materials like refined copper to support domestic industries. The tariff exemption deal is seen as a positive step to boost Indonesia's economic growth and strengthen bilateral trade relations.