Subianto said the tariffs faced by the southeast Asian country would be reduced from 32% to 19%. Trump said this was in exchange for "full access" for Ameri-can firms. Prabowo wrote on Instagram that the deal marked a "new era of mutual benefit" with Washing-ton. Trump was "quite a tough negotiator", Prabowo told reporters in Jakarta on Wednesday.

The pact is the latest to emerge after the White House unveiled a barrage of tariffs this spring, kicking off a flurry of trade talks over the duties. After suspending his most aggressive tariff plans from earlier this year, Trump this month renewed his threats, sending warn-ing letters to dozens of countries that he intended to start charging high tariffs from 1 August.

His targets included all of America's biggest trade partners, including the European Union, Canada, Mex-ico, Japan and South Korea. Indonesia also received a letter from Trump last week outlining plans for a 32% tariff on its goods, reportedly bewildering officials who had thought an agreement was close. Trump said on Tuesday he had reduced that rate after a phone call with the president of Indonesia. He said as part of the deal, Indonesia had agreed to lower its trade tariffs for products from the US, which America has complained were high for many agricultural products as well as certain manufactured goods. "They are going to pay 19% and we are going to pay nothing... we will have full access into Indonesia," he said. (BBC)