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
“It does not extinguish right away here — in any sort of sense — the real profitability concerns and people’s ability to pay bills and get to the other side of this in the very short term. This is where the skepticism builds.”
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