NASHVILLE, TENN. (RFD NEWS) — A new U.S.-Indonesia trade framework could expand market access for American agriculture, particularly in oilseeds, grains, and dairy products.
Analysis by Dr. Luis Ribera, Director of the Center for North American Studies at Texas A&M University, shows that the agreement would eliminate tariffs on 99 percent of U.S. exports to Indonesia, while U.S. tariffs on Indonesian imports would remain at 19 percent. The move targets both tariff and non-tariff barriers, aiming to improve competitiveness for U.S. products in a growing Southeast Asian market.
Trade flows highlight the opportunity. U.S. agricultural exports to Indonesia totaled $2.89 billion in 2025, led by oilseeds at $1.14 billion and grains and feed at $752 million. Dairy, cotton, and agricultural chemicals also represent smaller but important categories.
Indonesia remains a net exporter to the U.S., with imports totaling $7.14 billion, dominated by palm oil, seafood, cocoa, and coffee.
Reducing barriers could help narrow that trade gap while increasing demand for key U.S. commodities in a rapidly expanding market.
Farm-Level Takeaway: Expanded access could boost demand for U.S. exports.
Tony St. James, RFD NEWS Markets Specialist
Tariff relief may soften grocery prices, but it also intensifies competition for U.S. fruit, vegetable, and beef producers as cheaper imports regain market share.
November 17, 2025 01:20 PM
·
Strong U.S. yields and steady demand leave most major crops well supplied, keeping price pressure in place unless usage strengthens or weather shifts outlooks.
November 17, 2025 01:17 PM
·
While agriculture doesn’t predict every recession, the sector’s long history of turning down before the broader economy
November 16, 2025 12:00 PM
·
ARC-CO delivers the bulk of 2024 support, offering key margin relief as producers manage tight operating conditions.
November 15, 2025 12:00 PM
·
USMEF’s Jay Theiler discusses his leadership role in representing U.S. beef and pork and provides an update on this week’s conference in Indianapolis.
November 14, 2025 03:36 PM
·
As economic pressures continue to squeeze agriculture, ag lenders are signaling a more cautious outlook for farm profitability heading into next year, particularly among grain producers facing lower commodity prices and higher operating costs.
November 14, 2025 02:10 PM
·
