New U.S.-Indonesia trade deal sets a 19% default U.S. tariff on Indonesian imports with 0% rates for specified products and a textile quota mechanism.

REGULATORY BRIEFING – U.S.-INDONESIA AGREEMENT ON RECIPROCAL TRADE

1. What changed

• The Trump Administration finalized the U.S.-Indonesia Agreement on Reciprocal Trade.
• Once each side completes its domestic procedures, the agreement will enter into force.
• For U.S. imports from Indonesia, the United States will:
• Maintain a 19% “reciprocal” tariff rate on imports from Indonesia, except for certain identified products.
• Apply a 0% tariff rate to certain identified Indonesian products (list not yet published in this fact sheet).
• Establish a mechanism under which certain textile and apparel goods from Indonesia can receive a 0% tariff rate for a specified volume of imports.
• The United States may take the agreement into account when considering trade actions under Section 232 of the Trade Expansion Act of 1962.

2. Affected products

• All products imported from Indonesia are potentially affected because the agreement sets a default reciprocal tariff rate and creates exceptions.
• Two main categories of special treatment are described:

1) “Certain identified products” from Indonesia that will receive a 0% reciprocal tariff rate.

• The fact sheet does not list specific HTS codes or product descriptions.
• These could include priority sectors tied to the broader deal (e.g., industrial commodities, critical minerals, possibly some manufactured goods), but this is not specified and must be confirmed in implementing documents.

2) Certain textile and apparel goods from Indonesia eligible for 0% duty up to a volume cap.

• The volume will be determined in relation to the quantity of exports of textiles produced from American cotton and man-made fiber textile inputs from the United States.
• Specific HTS subheadings, rules of origin, and volume thresholds are not provided in the fact sheet and will need to be obtained from the implementing proclamation, Federal Register notices, or USTR/CBP guidance.

3. Rate changes and structure

• Default reciprocal tariff rate on Indonesian imports:
• New default rate: 19% ad valorem on imports from Indonesia.
• This is described as a “reciprocal tariff rate.” The fact sheet does not specify the prior MFN or NTR rates for individual HTS lines, but it does state that before this deal the U.S. average applied tariff was 3.3% (across all partners, not Indonesia-specific).
• For many products, this implies a substantial increase from typical MFN rates to 19% for Indonesian-origin goods, unless they fall under an exception.

• Zero-duty exceptions:
• Certain identified products from Indonesia will receive a 0% reciprocal tariff rate.
• Certain textile and apparel goods from Indonesia will receive a 0% reciprocal tariff rate, but only up to a to-be-specified volume.
• Above that volume, those textile/apparel goods would presumably revert to the 19% default rate (or another specified rate), but this is not explicitly stated and must be confirmed in implementing texts.

• Relationship to Section 232 and other trade remedies:
• The United States may “positively consider” the effect of the agreement on national security and may take the agreement into account when taking trade action under Section 232 (19 U.S.C. 1862).
• The fact sheet does not state that any existing Section 232, 301, 201, ADD, or CVD measures are modified or removed as part of this agreement.
• Any existing trade remedies on Indonesian products would remain in place unless separately modified by formal action.

4. Dates and implementation

• The fact sheet states: “In the coming weeks, the United States and Indonesia will undertake applicable domestic procedures to make the Agreement effective.”
• Effective date:
• Not yet specified. It will depend on completion of U.S. domestic procedures (likely including a Presidential proclamation and/or implementing instructions to CBP) and Indonesia’s procedures.
• Importers should expect a formal effective date to be announced via:
• Presidential proclamation
• Federal Register notice
• CBP Cargo Systems Messaging Service (CSMS) messages

• Expiration date:
• No sunset or expiration date is mentioned in the fact sheet.

• Deadlines and transition:
• No explicit transition rules are provided in the fact sheet (e.g., treatment of goods in transit, warehouse entries, or FTZ admissions). These details will need to be confirmed in the implementing documents.

5. Required actions for importers, brokers, and compliance teams

A. Monitor for implementing documents

• Closely track:
• Presidential proclamations implementing the U.S.-Indonesia Agreement on Reciprocal Trade.
• Federal Register notices from USTR, the White House, and CBP detailing:
• The list of “certain identified products” from Indonesia eligible for 0% duty.
• Any new or modified HTS subheadings or Chapter 99 provisions used to implement the 19% reciprocal rate and 0% exceptions.
• The design and administration of the textile/apparel 0% duty mechanism (quota or TRQ structure, licensing, allocation rules).
• CBP CSMS messages for operational guidance on entry filing, quota reporting, and any new special program indicators.

B. Review product portfolios and HTS classifications

• For all products sourced from Indonesia:
• Confirm HTS classifications at the 10-digit level to ensure accurate application of any new rates or Chapter 99 provisions.
• Identify which products are likely to fall under the 19% default rate versus potential 0% exceptions once lists are published.
• For textile and apparel products:
• Map all Indonesian-origin SKUs to HTS codes.
• Estimate annual import volumes by HTS and compare to expected quota volumes once announced.

C. Prepare for potential cost and sourcing impacts

• If the 19% default rate applies to your Indonesian-origin products and they are not covered by a 0% exception:
• Model landed cost increases and margin impacts.
• Evaluate alternative sourcing options from countries not subject to the 19% reciprocal rate.
• Consider supply chain restructuring to qualify for any 0% mechanisms (e.g., using U.S. cotton or man-made fiber inputs for textiles, if that becomes a condition).

D. Textile and apparel-specific actions

• Once the 0% mechanism details are published:
• Determine eligibility criteria (e.g., rules of origin, use of U.S. cotton/man-made fiber, direct shipment requirements).
• Understand the volume cap and whether it is administered as:
• A tariff-rate quota (TRQ) with in-quota 0% and over-quota 19%, or
• A hard quota with no entries allowed at 0% beyond the cap.
• Coordinate with customs brokers to:
• Use correct HTS and any required Chapter 99 numbers.
• Monitor quota fill rates and timing of entries to maximize 0% duty benefits.
• Implement internal controls to prevent misapplication of 0% rates once the quota is filled.

E. Entry and compliance controls

• Update internal customs compliance procedures to:
• Reflect new duty rates for Indonesian-origin goods once effective.
• Ensure brokers are instructed on country-of-origin identification and correct rate application.
• Implement checks for:
• Correct use of any new special program indicators or Chapter 99 numbers.
• Proper documentation to support origin claims and eligibility for 0% rates.

F. Trade remedy and Section 232 monitoring

• Because the agreement may be considered in future Section 232 actions:
• Monitor for any new or modified Section 232 measures that specifically reference Indonesia or products commonly sourced from Indonesia (e.g., steel, aluminum, critical minerals).
• For sectors like steel, aluminum, and critical minerals, coordinate with legal counsel to understand how the agreement might influence future national security-based tariffs or quotas.

G. Forced labor and supply chain due diligence

• Indonesia has committed to adopt and implement a forced labor import ban and to improve labor rights.
• While this is primarily a domestic Indonesian commitment, U.S. importers should:
• Continue to comply with U.S. forced labor laws (e.g., 19 U.S.C. §1307) and CBP enforcement, including Withhold Release Orders (WROs) where applicable.
• Strengthen supply chain due diligence for Indonesian suppliers, particularly in sectors with higher forced labor risk.

6. References and where to find more detail

• White House Fact Sheet (source of this summary):
• “Fact Sheet: Trump Administration Finalizes Trade Deal with Indonesia,” The White House, February 19, 2026.

• Anticipated implementing documents (to be monitored):
• Presidential Proclamation implementing the U.S.-Indonesia Agreement on Reciprocal Trade (will likely be posted at:
• https://www.whitehouse.gov/presidential-actions/
• Federal Register notices (for tariff schedules, HTS/Chapter 99 changes, and quota details):
• https://www.federalregister.gov
• USTR announcements and agreement text (for full legal terms, product lists, and schedules):
• https://ustr.gov
• CBP operational guidance (for entry filing, quota administration, and coding):
• CBP Cargo Systems Messaging Service (CSMS): https://www.cbp.gov/trade/automated/cargo-systems-messaging-service

7. Key takeaways for compliance teams

• Expect a significant structural change in duty treatment for Indonesian-origin goods, with a high default rate (19%) and targeted 0% exceptions.
• No specific HTS codes or Chapter 99 provisions are provided in the fact sheet; these will be critical for implementation and must be obtained from subsequent official documents.
• Immediate priority is monitoring for implementing regulations and preparing internal systems and sourcing strategies to respond quickly once the effective date, product lists, and quota mechanisms are published.