Trump announces Philippines trade deal, after pact with Indonesia

Driving the news: President Trump met with Philippine President Ferdinand Marcos Jr. at the White House Tuesday.

• After the meeting, Trump posted on Truth Social about the deal, and added the two countries will cooperate militarily as well.

Catch up quick: On April 2, Trump imposed a 17% tariff rate on the Philippines.

• That rate was lifted to 20% in a recent letter Trump sent to Marcos.

Zoom out: Investors are pricing in a post-tariff world, betting on trade deals that lead to lower levies than those teased out on April 2.

• This trade deal refutes that idea, given that the 19% tariff rate agreed upon today is higher than the original Liberation Day levy on the Philippines.

Of note: Hours after the Philippines news, officials released details on the recent pact with Indonesia.

• That deal, touted by Trump on Truth Social last week, imposes a 19% tariff on all goods imported from Indonesia, while the Southeast Asian nation agreed to drop levies on nearly all U.S. exports to zero.
• A senior Trump administration official pointed out that Indonesia will face a higher tariff than they had on Jan. 20, when Trump was inaugurated — but a lower rate than the 32% levy that was threatened.

What to watch: Any goods shipped through Indonesia will face a higher tariff of 40%.

• The agreement says that Indonesia will broaden access for U.S. exporters, including producers of medical devices, farm products and automobiles. It will also drop a plan for an internet tax that would have targeted the flow of data and support.
• The senior official said many countries have taken steps to remove non-tariff barriers, even some that have not yet reached a deal with the U.S.

The bottom line: A zero percent tariff on U.S. goods is exactly the type of deal the president has been looking for amid this trade war.

Editor's note: This story has been updated with details on the U.S. deal with Indonesia.