Trump lowers Indonesia tariff rate to 19 percent

President Trump on Tuesday said his administration will impose a 19 percent tariff on Indonesia, lowering the import tax rate he slapped on the nation last week, which was set to go into effect Aug. 1.

“We made a deal with Indonesia. I spoke to their really great president, very popular, very strong, smart, and we made the deal. We have full access to Indonesia, everything," Trump told reporters at the White House. "As you know, Indonesia is very strong on copper, but we have all full access to everything, we will pay no tariffs, so they are giving us access into Indonesia, which we've ever had."

"That's probably the biggest part of the deal. And the other part is, they are going to pay 19 percent and we are going to pay nothing," he continued. "I think it's a good deal for both parties."

Trump had sent out a letter July 7 on Truth Social setting Indonesia’s tariff rate to 32 percent. He had previously suggested he was open to negotiating down tariff rates after the letters had been sent out to trading partners.

“Great deal, for everybody, just made with Indonesia. I dealt directly with their highly respected President. DETAILS TO FOLLOW!!!” Trump wrote online earlier Tuesday.

Indonesia is one of the top global producers of copper, which Trump warned earlier this month could be hit with a 50 percent tariff as a way to increase production of it in the U.S. He said on Tuesday that the deal with Indonesia opens up the use of the country’s copper.

“Now, Indonesia has some great products, and they also have some very valuable Earths and various other materials," the president told reporters. "One of the things, as you know, they're known for, is very high-quality copper, which will be using."

He also teased an upcoming deal with India, which administration officials said has been in the works for months.

“India basically is working along that same line," Trump said. "We're going to have access into India. And you have to understand, we had no access into any of these countries."

The president has sent out letters to about two dozen trading partners setting new tariff rates, including 25 percent on Japan and Malaysia, 40 percent on Myanmar and 36 percent on Thailand. Canada, the European Union and Mexico — some of the U.S.'s top trading partners — were hit with updated tax rates as well.

Trump also noted Tuesday that the latest data which found inflation rose, were “very much inside the margin.” The Labor Department’s consumer price index rose by 0.3 percent on the month to hit an increase of 2.7 percent compared to last year.