GTRI warns India against 'trap' like US-Indonesia trade deal

Claiming that the US-Indonesia trade deal was a "clear example of how aggressive US pressure can force" countries to ink one-sided agreements, think-tank Global Trade Research Initiative (GTRI) suggested India to be careful and not "fall into the same trap".

- TBG NETWORK

The US-Indonesia trade deal was announced by the White House on July 22, 2025. "The deal strongly favors the U.S., opens up Indonesia's markets, weakens its domestic regulations, and damages its long-standing position at the WTO," GTRI said in a report Wednesday.

For India, this US-Indonesia deal serves as a warning of what to avoid in trade negotiations with the U.S., GTRI asserted.

In the trade deal, Indonesia has agreed to eliminate 99 per cent of its tariffs on US exports, opening its market almost entirely to American industrial, tech, and agricultural goods. In return, the US will impose a 19 per cent tariff on Indonesian goods--reduced from an earlier proposal of 40 per cent. Additionally, US MFN (Most Favored Nation) tariffs will continue to apply on Indonesian exports.