Trump's Japan and Indonesia Trade Deals Signal Caution for India

Last Updated Jul - 23 - 2025, 03:44 PM | Source : Fela news

As the U.S. finalizes trade agreements with Japan and Indonesia, experts warn India to tread carefully. Key issues like agriculture, tariffs, and regulatory con

Trump's Japan and Indonesia Trade

U.S. President Donald Trump’s announcements on trade agreements with Japan and Indonesia could have major implications for future U.S.–India trade talks, according to officials and trade analysts.

On July 22, 2025, Trump announced a “massive deal” with Japan, while the White House released details of a framework agreement with Indonesia. As part of the Japan deal, Tokyo will invest \$550 billion in the U.S., reportedly creating “hundreds of thousands” of jobs. Tariffs on Japanese imports will be reduced to 15% from a proposed 25%. Japan also agreed to import more U.S. rice under its duty-free quota. Currently, Japan imports 770,000 metric tons of tariff-free rice annually, with the U.S. accounting for 45% of that volume. This share is expected to grow. Additionally, Japan will open up sectors like automobiles and agriculture to U.S. imports. Agriculture has remained a contentious issue in ongoing U.S.–India negotiations.Indian officials say they are monitoring these developments but stress that the deals are not yet formalised. A key concern is Japan’s effort to maintain control over rice import volumes under WTO rules.

The U.S.–Indonesia deal involves Jakarta removing tariffs on 99% of U.S. imports and committing to major purchases: \$3.2 billion in aircraft, \$4.5 billion in agricultural goods, and \$15 billion in energy products. In exchange, the U.S. will lower tariffs on Indonesian goods to 19%. Trade expert Ajay Srivastava warned that the deal pushes Indonesia to give up domestic regulatory control, a precedent India must avoid in its own negotiations.

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Trump's Japan and Indonesia Trade Deals Signal Caution for India

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