The United States has reached a major trade agreement with Indonesia, heading off the threat of steep tariffs after intense, last-minute negotiations between the two countries’ leaders.

President Donald Trump confirmed the deal on Tuesday, saying it would significantly boost U.S. exports while preserving Washington’s leverage against transshipment violations.

Under the new agreement, Indonesian imports to the U.S. will be subject to a 19% tariff—well below the 32% rate Trump had threatened to impose by August 1. The compromise was finalized following direct discussions between Trump and Indonesian President Prabowo Subianto.

“Indonesia has agreed to purchase $15 billion worth of American energy, $4.5 billion in agricultural products, and 50 Boeing aircraft, including many 777s,” Trump announced via his Truth Social platform.

The agreement also includes strict provisions aimed at cracking down on transshipment practices, warning that any efforts by exporters to reroute goods through third countries to dodge tariffs will trigger harsher penalties.

Despite the headline-making announcement, Boeing stock held steady in Tuesday trading, and several key details remain unclear—including the timeline for when the new tariff rates will take effect and over what period the promised purchases will be completed.

The deal marks a key development in Trump’s broader tariff strategy, launched in April, which introduced a 10% baseline tariff on nearly all U.S. trading partners and threatened future hikes. Since then, the White House has postponed the rollout of harsher measures, with the August 1 deadline having already been pushed back from an initial target of July 9.

Trump also signaled more tariff updates are on the way, saying Tuesday that smaller countries will soon be notified of their new trade rates, with many expected to face “a little over 10%.” He further indicated that a trade deal with Vietnam was “pretty well set,” though he offered no specifics.