The EU and Indonesia have reached a political agreement that seeks to advance their trade relations through the Comprehensive Economic Partnership Agreement (CEPA). European Commission President Ursula von der Leyen announced the accord on Sunday.

The CEPA aims to enhance trade opportunities across key industries, particularly agriculture and the automotive sector, providing new market avenues. The EU and Indonesia are set to strengthen their economic ties significantly with this accord.

Indonesian President Prabowo Subianto expressed the importance of European participation in Indonesia’s economy, highlighting the untapped potential. He described the deal as a timely example amid global uncertainty.

(With inputs from agencies.)

Subianto visited Brussels to negotiate tariff-free access for Indonesian goods, focusing on palm oil trade amid EU anti-deforestation policies.

www.politico.eu

Indonesian Trade Minister Agus Subianto recently arrived in Brussels to negotiate tariff-free access for Indonesian goods under the Comprehensive Economic Partnership Agreement (CEPA). This pivotal meeting comes amid heightened economic uncertainty and geopolitical tensions, particularly after U.S. President Donald Trump announced a 30% tariff on EU exports effective August 1, 2025-07-13 17:01:00.

6 Key Takeaways Subianto seeks tariff-free access for Indonesia.

Palm oil trade complicates EU negotiations.

Von der Leyen emphasizes partnership importance.

Trump’s tariffs add pressure on negotiations.

CEPA aims for fairness and job creation.

Agreement should benefit both Indonesia and EU.

Subianto emphasized that CEPA is more than just a trade agreement; it represents fairness, respect, and a commitment to sustainable development. The discussions are crucial, especially concerning palm oil trade, which clashes with the EU’s anti-deforestation policies. European Commission President Ursula von der Leyen remarked on the importance of strengthening partnerships during turbulent times.

Fast Answer: Indonesia ‘s CEPA negotiations with the EU aim for tariff-free trade, focusing on sustainability amid rising global tensions and tariffs impacting international trade dynamics.

The ongoing discussions raise important questions about the future of trade relationships. How will the EU balance its environmental policies with Indonesia’s economic needs? And can both parties find common ground on palm oil trade? Key points include:

Indonesia seeks to enhance job creation and industry growth through CEPA.

The EU’s anti-deforestation stance complicates palm oil trade negotiations.

U.S. tariffs on EU exports add pressure to these discussions.

These negotiations hold global significance as they could reshape trade dynamics and sustainability efforts worldwide.

As the talks progress, stakeholders must remain engaged to ensure a balanced agreement that benefits both regions. Will a mutually beneficial deal emerge in these complex times?

Subianto arrived in Brussels over the weekend for talks in a bid to secure tariff-free access to the EU for Indonesian goods under the Comprehensive Economic Partnership Agreement (CEPA). While a deal had been under development, one key sticking point had been trade in palm oil products, which conflict with the EU’s anti-deforestation policies.

“We are living in turbulent times and, when economic uncertainty meets geopolitical volatility, partners like us must come closer together,” von der Leyen said in a joint press conference. “So today we’re taking a big step forward in this partnership.”

The move comes just a day after U.S. President Donald Trump sent a letter to Brussels declaring EU exports to the country would be subject to 30 percent tariffs starting Aug. 1, despite Brussels having scrambled to reach a deal with Washington. Two diplomats told POLITICO that they hoped the grace period gave additional time to negotiate an exemption.

“For Indonesia, CEPA is not only about trade, it is about fairness, respect, and building a strong future together,” said Subianto. “The agreement must support our efforts to grow our industries, create jobs, and strengthen our sustainable development goals,” he said.

“We are ready to finalize it soon, in a way that benefits both our peoples,” Subianto said.

For many countries, the reprieve from President Donald Trump’s eye-watering tariffs, which were implemented on April 2 and temporarily reduced to 10% a week later, is soon set to come to an end. The 90-day pause, during which the Trump Administration pledged to negotiate deals with trading partners, was set to expire on Wednesday, July 9, but the White House confirmed on July 7 that it would push back the start of hiked tariffs to Aug. 1. Trump also began sharing “letters” to multiple heads of state on Truth Social, alerting them of the tariff rates their countries will face in August if they do not reach deals before then.

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While Trump’s trade adviser Peter Navarro said in April that the Administration would deliver “90 deals in 90 days,” officials lowered expectations in recent days. Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick recently said they expected about 12 trade deals. Navarro, on July 7 outside the White House, blamed the dragged-out process on other countries for “dragging their heels.” “If you don’t move things along, then on August 1 you will boomerang back to your April 2 tariff level,” Bessent said on CNN on July 6. “I’m not going to give away the playbook.” Trump has so far reached three deals—with the U.K., China, and Vietnam—but beginning July 7 the President sent out new tariff rates for over 20 countries, including major trading partners Canada, Japan, and South Korea, and said the European Union is next. He also said on July 8 that his Administration views the unilateral tariff rates as deals, though the letters shared so far do not describe negotiated trade deals: “I just want you to know—a letter means a deal.”

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Many of the trading partners that have not yet received letters can expect blanket tariffs of 15% or 20%, Trump told NBC News on July 10. The current baseline tariff is 10%. He added, “not everybody has to get a letter. You know that. We’re just setting our tariffs.”

“Our relationship has been, unfortunately, far from Reciprocal,” Trump wrote in the letters, which mostly followed an apparently standardized format. “We invite you to participate in the extraordinary Economy of the United States,” he wrote, “but only with more balanced, and fair, TRADE.” “If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the [tariff] that we charge,” Trump added.

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These so-called “reciprocal” tariffs are in addition to industry-specific tariffs, including a 25% tariff on cars and car parts and a 50% tariff on steel and aluminium imports. Trump said at a July 8 Cabinet meeting that he could also impose a 50% tariff on copper imports—which he confirmed the following day would start on Aug. 1—after a Commerce Department review, and he threatened tariffs of as high as 200% on pharmaceuticals. Trump also warned in a July 6 Truth Social post that countries “aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy.” BRICS, an intergovernmental group of major emerging economies that includes Russia, China, and Iran, condemned tariffs at a summit the same day. But Trump also indicated that negotiations were still on the table. “If you wish to open your heretofore closed Trading Markets to the United States, and eliminate your Tariff, and Non Tariff, Policies and Trade Barriers, we will, perhaps, consider an adjustment to this letter,” the letters conclude. “These tariffs may be modified, upward or downward, depending on our relationship with your Country. You will never be disappointed with The United States of America.”

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“If they call with a different offer, and if I like it, we’ll do it,” Trump told reporters on July 7. He said the next day that “TARIFFS WILL START BEING PAID ON AUGUST 1 … No extensions will be granted,” after earlier telling reporters that the Aug. 1 deadline was “firm but not 100% firm. If they call up and they say we’d like to do something a different way, we’re going to be open to that. But essentially that’s the way it is right now.” Trump’s pattern of making bold declarations before abruptly switching tack, as he has done on tariffs, has earned him the nickname “TACO” for “Trump Always Chickens Out.” Smaller trading partners, which were among the hardest hit by Trump’s Liberation Day “reciprocal” tariffs, have largely been sidelined in negotiations, and U.S. officials have said they are likely to just send those countries “letters.” But experts had said even many major trading partners may not be able to reach deals so fast, and the agreements that have been reached are more broad frameworks with details to be worked out later than concrete deals.

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And challenges to Trump’s tariffs remain: a group of small businesses is urging a federal appeals court to block Trump’s levies after the U.S. Court of International Trade earlier found the President’s broad tariffs illegal. Here’s what we know so far about the Trump Administration’s deals and negotiations with various countries so far. Algeria Algeria’s “reciprocal” tariff rate starting August remains unchanged from April at 30%, Trump announced July 9. Bangladesh Imports from Bangladesh will be tariffed at 35% starting in August if the country doesn’t make a deal with the U.S., Trump said on July 7. The new rate marks a reduction from the initial “reciprocal” tariff of 37% imposed in April. Bangladesh supplies mainly ready-made garments to the U.S., with the sector employing millions of Bangladeshi workers and making up around 80% of the country’s total exports. Bangladeshi Commerce Secretary Mahbubur Rahman told Bloomberg earlier on July 7 that the country’s interim government has had “at least seven rounds of negotiations, both virtual and in-person, and we expect a positive outcome.”

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Bosnia and Herzegovina Bosnia will face a 30% tariff, per Trump’s letter on July 7. That’s down from the 35% rate initially imposed in April. Trump initially addressed Bosnia and Herzegovina’s female leader, Željka Cvijanović, as “Mr. President.” He later issued a corrected letter addressed to “Madam President.” Brazil Brazil will face a staggering 50% tariff in August, with Trump citing “grave injustices” against the country’s former President Jair Bolsonaro, who is being prosecuted on charges of attempting to launch a coup to stay in office in 2022. “It is a Witch Hunt that should end IMMEDIATELY!” Trump said in a letter shared on Truth Social on July 9. The new rate is five times of the 10% rate imposed in April. Trump also pointed to Brazil’s “unsustainable Trade Deficits” with the U.S., although the U.S. had an over $7 billion trade surplus with Brazil last year. Trump’s earlier threat against countries that aligned themselves with BRICS would also target Brazil, which is a BRICS member and hosted the summit in Rio de Janeiro.

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Brazilian President Luiz Inácio Lula da Silva posted on X after Trump’s announcement, “Brazil is a sovereign nation with independent institutions and will not accept any form of tutelage.” In a rare direct confrontation to Trump among world leaders, he added that tariff hikes on Brazil would be reciprocated. “Sovereignty, respect and the unwavering defense of the interests of the Brazilian people are the values that guide our relationship with the world.” Brazil’s government is weighing countermeasures against the U.S. that are permitted under its Reciprocity Law passed in April. Brunei Brunei will be tariffed at 25% from Aug. 1. The Southeast Asian nation faced a slightly lower rate of 24% in April. Cambodia Cambodia will face a 36% tariff starting Aug. 1, down from its initial rate of 49%. Canada Trump has hit Canada with a 35% tariff on all imports starting in August, in spite of previous suggestions that protracted negotiations between the U.S. and Canada could materialize in a deal. Trump’s letter on July 10 cited “Canada’s failure to stop the drugs from pouring into our country” as one reason for the high tariff on the U.S.’ neighbor and major trading partner.

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But he added, “the flow of Fentanyl is hardly the only challenge we have with Canada,” pointing to “extraordinary Tariffs to our Dairy Farmers—up to 400%—and that is even assuming our Dairy Farmers even have access to sell their products to the people of Canada.” Canada has called Trump’s claims about cross-border fentanyl smuggling “unjustified.” Canada imports Trump-negotiated amounts of dairy products from the U.S. tariff-free every year. Above those quotas, Canada tariffs U.S. dairy products at over 200%, rates left in place by the 2018 agreement, which Trump then-touted as “the best trade deal ever made.” Canada had said it hoped to reach an agreement by July 21. Trump initially cut off talks on June 27 over Canada’s proposed digital services tax, which Trump called “a direct and blatant attack on our Country.” Talks resumed after Ottawa said it was abandoning the policy—a move that White House Press Secretary Karoline Leavitt described as Canada having “caved.” Canada was exempt from Trump’s “reciprocal” tariffs but faced previously announced tariffs amounting to 25% on most goods.

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Trump’s ambassador to Canada, Pete Hoekstra, said on July 4 that a deal would be reached with Canada, though he did not say when. “Canada is one of our biggest trading partners,” Hoekstra said on Canadian outlet CTV News. “We’re going to have a deal that’s articulated.” “We’re not going to send Canada just a letter,” he added. China China and the U.S. reached a deal in June that sets U.S. tariffs on Chinese imports at 55% and Chinese tariffs on American imports at 10%, after agreeing to a truce a month earlier that lowered escalating tit-for-tat tariffs from 145% on Chinese imports to 30% and 125% on American imports to 10%. The world’s two biggest economies also eased restrictions on de minimis packages and agreed to lift export controls, including the sale of certain chip design software and ethane to China and rare earth exports to the U.S. Trump said that he has been speaking regularly with Chinese President Xi Jinping, even as the U.S. has cracked down on Chinese investment, including a ban on Chinese ownership of farmland announced July 8. “We have had a really good relationship with China lately, and we’re getting along with them very well,” he said at the July 8 Cabinet meeting. “They’ve been very fair on our trade deal, honestly.”

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E.U. The European Union wants to strike a trade deal “in principle” with the U.S. by the deadline, European Commission President Ursula von der Leyen said on July 3. The E.U. initially faced a 20% “reciprocal” tariff. “What we are aiming at is an agreement in principle,” von der Leyen said, noting that a detailed deal would be “impossible” before the deadline. “That is also what the U.K. did.” E.U. Trade Commissioner Maroš Šefčovič has reportedly been in talks with his U.S. counterparts, but progress around a possible deal has run into some roadblocks. The E.U. has said it will not budge on its strict regulations on social media and technology companies, for one. The 27-member bloc reportedly yielded to a 10% tariff on many of its exports but is seeking lower rates on key sectors, including pharmaceuticals, alcohol, and semiconductors, as well as quotas and exemptions to reduce higher tariffs on autos and metals—which are tariffed separately at 25% and 50%.

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India India is one country that may reach a deal with the U.S. before the deadline, averting Trump’s 27% “reciprocal” tariff rate for the country’s exports. Trump said on June 26 that “a very big” deal with India would come soon, and India’s trade negotiators extended their recent stay in the U.S. to continue talks. An interim trade deal will likely be finalized before the deadline, unnamed sources told Indian media outlet NDTV. Still, both sides have toughened their positions on certain key issues. The U.S. wants India to open its market to genetically-modified crops and import more dairy, almonds, soybeans, and other agricultural products from the U.S., while India has been reluctant to lower protections for its domestic farmers. India is willing to lower tariffs on walnuts, fruits, medical devices, autos, and energy products, a source familiar with the negotiations told Reuters, and it has sought concessions on Indian steel and auto parts as well as fabrics and apparel.

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Indonesia Indonesia’s tariff rate, according to a letter Trump sent on July 7, remains unchanged from the 32% levy initially imposed in April. Indonesia is also a member of BRICS, which faces the threat of an additional 10% tariff. Iraq Iraq will face a 30% import duty, down from the 39% rate initially imposed in April. Japan Japan will be tariffed at 25% beginning Aug. 1, a slight increase from the initial tariff rate of 24%, after Trump in recent weeks cast doubt over reaching a deal with Japan anytime soon. Japan’s Prime Minister Shigeru Ishiba called the higher tariff rate “extremely regrettable” and said Japan would continue to work towards a deal while still defending its interests. Ishiba also raised the possibility of speaking directly with Trump. Progress in negotiations has been stymied by disagreements over Japan’s protections for its politically important domestic rice industry. Trump officials have suggested that Japan tariffs foreign rice at a rate over 700%. In fact, Japan imports 770,000 metric tons of rice every year without any tariffs, around half of which comes from the U.S. Above that, Japan imposes a tariff of ¥341 (about $2.30) per kilogram.

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“To show people how spoiled Countries have become with respect to the United States of America, and I have great respect for Japan, they won’t take our RICE, and yet they have a massive rice shortage,” Trump posted on Truth Social on June 30. “In other words, we’ll just be sending them a letter, and we love having them as a Trading Partner for many years to come.” Trump told reporters on July 1 that Japan ought to “pay 30%, 35% or whatever the number is that we determine.” “I’m not sure we’re going to make a deal. I doubt it with Japan, they’re very tough. You have to understand, they’re very spoiled,” he added. Japan’s Prime Minister Shigeru Ishiba, however, said on July 3, “talks are steadily but undoubtedly moving forward. There are a wide range of areas including non-tariff barriers that are being covered, but the talks on each of these points are progressing, step by step.” Talks are also limited by uncertainties around obtaining a deal on autos and metals. Tariffs on both the auto industry and steel and aluminium are subject to pending Commerce Department investigations, which makes negotiating a trade deal without knowing the outcome of those probes challenging. Moreover, Trump has signalled an unwillingness to budge on the 25% auto tariff that would hit Japan’s export economy hard.

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“We give Japan no cars, they won’t take our cars, and yet we take millions and millions of their cars into the United States,” Trump said on Fox News. “It’s not fair.” Kazakhstan Kazakhstan, which exports mainly crude oil to the U.S., will be tariffed at a 25% rate, slightly lower than the 27% rate set in April. Laos Laos will be tariffed at 40%, lower than the 48% rate it initially faced in April. Libya Libya will face a 30% tariff rate, slightly down from the 31% initially imposed in April. Malaysia Imports from Malaysia will be tariffed at 25% starting Aug. 1, a marginal increase from the 24% levy imposed in April. Malaysia’s top exports to the U.S. are electronic parts. Moldova Moldova will face a 25% tariff from August. It faced an initial “reciprocal” tariff of 31% in April. Myanmar Myanmar’s tariff rate has been lowered from 44% imposed in April to 40% beginning in August. Philippines The Philippines, a longstanding U.S. ally, will face a 20% tariff rate, up from the 17% rate it faced in April. The Southeast Asian country said on July 10 that it will hold further talks with the U.S. to try to secure a better deal ahead of Aug. 1, including a planned trip by Philippine officials to the U.S. the following week.

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Serbia Serbia will face a 35% tariff starting August, a reduction from the 37% rate imposed in April. South Africa South Africa will face a 30% tariff beginning Aug. 1, a small reduction from the 31% rate that was imposed in April. South Africa’s main export to the U.S. is metals and cars, which face separate levies. As a BRICS member, though, South Africa may also face an additional 10% levy. South Korea South Korea will face a 25% levy, a slight reduction from the 26% rate it faced in April. South Korea earlier said it would seek an extension on Trump’s July 9 deadline. “We see this letter as a de facto extension of the grace period for imposing reciprocal tariffs until August 1,” South Korea’s Industry Ministry said in a statement on July 8. South Korean President Lee Jae Myung said on July 3 that “it’s still not clear to each side what the other side wants.” South Korea says it imposes “close to 0” tariffs on the U.S. under a free-trade agreement, with an effective tariff rate of around 0.79%. Trump has said South Korea imposes a tariff “four times higher” than the U.S. Trump has also complained that the U.S. has given South Korea, a key U.S. ally, “so much help militarily” in stationing 28,500 U.S. troops in South Korea to protect against the North.

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South Korea’s Trade Minister Yeo Han-koo met with U.S. Trade Representative Jamieson Greer in Washington on July 5, proposing a “mutually beneficial” manufacturing partnership in a last-ditch effort to avoid Trump’s tariffs. As a major exporter of cars and steel, South Korea is also vulnerable to Trump’s separate auto and metals tariffs, which the country is seeking to avoid completely. Sri Lanka Sri Lankan imports will be tariffed at a 30% rate from August, lower than the 44% rate imposed in April. Thailand Thailand will face a 36% import duty starting Aug. 1 if no deal is reached before then, which is the same tariff rate initially imposed in April. (The letter to Thailand addressed former acting Prime Minister Suriya Juangroongruangkit, though he was replaced by a new acting Prime Minister the prior week.) Thailand previously said it expects to reach a tariff deal with the U.S. before the deadline and said it is aiming for more favorable rates than the deal the U.S. recently reached with Vietnam because it has a smaller trade deficit with the U.S. than Vietnam does. “Vietnam’s agreement serves as a benchmark,” Poj Aramwattananont, Thailand’s Chamber of Commerce head, said, according to the Bangkok Post.

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Thailand has made a revised proposal with concessions towards reducing its trade surplus with the U.S. by 70% within five years, Finance Minister Pichai Chunhavajira told Bloomberg on July 6. Thai negotiators met with U.S. counterparts for in-person trade talks for the first time that week, although officials have had several rounds of online discussions ahead of their visit to Washington. Thailand has proposed reducing tariffs on the U.S., promised to buy more American products, and vowed to crack down on trade fraud. Tunisia Tunisia will face a 25% tariff starting Aug. 1, down from the 28% rate initially imposed. U.K. The U.K. and the U.S. signed a deal in June, which brought U.S. tariffs on British cars down to 10% from 27.5% and removed tariffs on British aircraft engines and parts. Some details of the deal, though, are not yet finalized, and the two countries are still hammering out an agreement around metals imports.

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Vietnam

The U.S. and Vietnam announced a deal on July 2, which would tariff Vietnamese exports to the U.S. at a 20% rate, as opposed to the initial 46% “reciprocal” tariff. Goods deemed to be transshipped, however, will be tariffed at a 40% rate in a measure indirectly targeting China, which has rerouted products through Vietnam to get around past U.S. import duties. In exchange, Vietnam agreed to having no tariffs on U.S. imports, Trump said.

How exactly transshipments will be determined has not yet been made clear, and the deal so far does not make mention of industry-specific tariffs on cars and metals. Vietnam said on July 3 that its negotiators are in the process of finalizing the details of the agreement with the U.S., while Bessent said the deal was “finalized in principle.”

President Trump is pushing through with his tariff agenda, unveiling a new batch of letters to country leaders outlining tariffs on goods imported from their countries beginning in August and a warning to BRICS nations.

Trump announced a 35% tariff on Canadian goods late Thursday on Truth Social, claiming Canada had “financially retaliated” to earlier duties. A White House official said, however, that many carveouts currently in place with US tariffs on Canadian goods would remain, such as oil and certain sector-specific duties.

In an interview with NBC News published late Thursday, Trump also floated 15% to 20% blanket tariffs on most trading partners, higher than the 10% level currently in effect.

The fresh tariff salvos capped a week in which Trump sent a barrage of tariff letters to over 20 trade partners, setting levels of 20% to 40% — except for a 50% levy on goods from Brazil in a move that waded into the country’s domestic politics.

Meanwhile, Trump injected fresh uncertainty into the metal market this week, confirming 50% copper import tariffs from Aug. 1 to match steel and aluminum. Trump’s copper tariffs are also set to include the kinds of materials used for power grids, the military and data centers, a Bloomberg report highlighted on Friday.

As markets focus on US talks with key partners on possible deals, here is where things stand:

Vietnam: Trump said a deal with Vietnam will see the country’s imports face a 20% tariff — lower than the 46% Trump had threatened in April. He also said Vietnamese goods would face a higher 40% tariff “on any transshipping” — when goods shipped from Vietnam originate from another country, like China. According to reports, Vietnam’s leadership was caught off guard by Trump’s announcement last week that it agreed to a 20% tariff and is now seeking to lower the rate.

European Union: The EU has signaled it is willing to accept a 10% universal tariff on many of its exports but is seeking exemptions for certain sectors. The bloc is racing to clinch a deal.

India: Trump’s tariffs on Brazil have raised the stakes for India, another member of the BRICS coalition. Bloomberg reported that the countries are working toward a framework deal that could see US tariffs on goods from India drop below 20%.

Read more: What Trump’s tariffs mean for the economy and your wallet

Here are the latest updates as the policy reverberates around the world.

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