Indonesia’s President, Prabowo Subianto, has confirmed a trade deal with the U.S., apparently after what he calls “tough negotiations.” The terms? U.S. exports to Indonesia will miraculously face no tariffs, while Indonesia’s exports to the U.S. are slapped with a 19 percent tariff. To think one might call this a “great deal for everybody,” as President Trump so optimistically puts it, is quite the stretch of imagination. But then, these days, the measure of successful trade negotiation seems to be how much one can boast about it on social media rather than its actual economic impact.
The Trump administration, in its typical fashion, is rushing to close trade deals with a host of nations, perhaps to keep up with its own threats of double-digit tariffs looming over exports from two dozen countries. It’s an economic strategy reminiscent of a hostage situation, except here, the hostages are global economies.
In recent months, U.S. and Indonesian officials have been engaged in what must be described as theatrical trade talks. Last week, President Trump threatened a hefty 32 percent tariff on Indonesian exports via his favorite communication platform, social media. Indonesian officials, caught off guard by the letter, were likely shaking their heads at the absurdity. After all, they thought negotiations were on track, but the art of the deal apparently includes a few dramatic plot twists.
President Trump, ever the optimist, assures us it’s a “good deal for both parties” and hints that a similar deal with India is on the horizon. Alongside this, he notes Indonesia’s reserves of minerals and “very high-quality copper,” presumably to be used in the next great infrastructure plan that remains as tangible as a mirage.
While the media hails these deals as breakthroughs, one must question the wisdom of such negotiations. Are these tariffs simply a means to prop up a narrative of economic strength while ignoring the longer-term ramifications on global trade relations? As the administration continues its tariff threats, the global economic community watches, perhaps bemused, perhaps concerned, but definitely skeptical of this new era of economic diplomacy by decree.
