Indonesia is resisting attempts by Donald Trump to force it to accept so-called “poison pill” and other coercive clauses in its “reciprocal tariff” trade deal with the US, a move that challenges American efforts to counter China’s influence in south-east Asia.
The rebuff to the US president’s bid to impose the clauses emerged during negotiations to finalise a preliminary trade deal agreed in July that slapped a 19 per cent “reciprocal tariff” on Jakarta.
Three people familiar with the negotiations said Indonesia had rejected the clauses — which the US successfully imposed on Malaysia and Cambodia in similar deals last month — on the grounds that they impinged excessively on the country’s freedom to act.
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