On Wednesday, as Washington convenes the Trump Peace Council, Indonesian President Joko Widodo will have the opportunity to sign a new trade agreement with the United States. Following lengthy discussions and significant pressure, President Donald Trump agreed to reduce tariffs on Indonesian goods from 32% to 19%. This trade deal is seen in the context of the U.S. administration's need for support from countries like Indonesia that engage in business with Iran.

In exchange for the tariff reduction, Indonesia, the world's largest Muslim-majority nation, has committed to lowering tariffs on American goods, purchasing Boeing airplanes, and increasing its soy imports from the U.S. This arrangement illustrates a shift in America’s approach to sanctions, indicating that economic negotiations can take precedence over stringent enforcement in certain contexts, particularly when the U.S. seeks to stabilize relations with strategic partners.

The implications of this deal extend beyond bilateral trade; it reflects the complexities of U.S. foreign policy where trade agreements are intertwined with the geopolitical landscape, specifically regarding Iran. As nations like Indonesia navigate their economic ties with the U.S. while engaging with other nations, it raises questions about the effectiveness and consistency of American sanctions and how they are applied based on political necessity.