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President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:
“This morning I finalized an important Deal with the Republic of Indonesia after speaking with their Highly Respected President Prabowo Subianto. This landmark Deal opens up Indonesia’s ENTIRE MARKET to the United States for the first time in History. As part of the Agreement, Indonesia has committed to purchasing $15 Billion Dollars in U.S. Energy, $4.5 Billion Dollars in American Agricultural Products, and 50 Boeing Jets, many of them 777’s. For the first time ever, our Ranchers, Farmers, and Fishermen will have Complete and Total Access to the Indonesian Market of over 280 million people. In addition, Indonesia will pay the United States a 19% Tariff on all Goods they export to us, while U.S. Exports to Indonesia are to be Tariff and Non Tariff Barrier FREE. If there is any Transshipment from a higher Tariff Country, then that Tariff will be added on to the Tariff that Indonesia is paying. Thank you to the People of Indonesia for your friendship and commitment to balancing our Trade Deficit. We will keep DELIVERING for the American People, and the People of Indonesia!”
How Will Trump’s Statement Affect the Stock Market?
This latest post has the potential to affect the stock market. That’s because Donald Trump’s announcement of a trade deal with Indonesia could positively impact the stock prices of Boeing Company and Archer-Daniels-Midland Company due to the large purchase orders for jets and agricultural products. Chevron and the Energy Select Sector SPDR Fund might see gains from the $15 billion commitment to U.S. energy, while the Industrial Select Sector SPDR Fund could benefit from increased industrial activity. However, the Consumer Discretionary Select Sector SPDR Fund might experience mixed effects due to potential changes in consumer spending patterns resulting from the new tariffs on Indonesian exports.
Here are some of the stocks that might be affected:
Archer-Daniels-Midland Company ((ADM)),
Boeing Company ((BA)),
Chevron ((CVX)),
Industrial Select Sector SPDR Fund ((XLI)),
Energy Select Sector SPDR Fund ((XLE)),
Consumer Discretionary Select Sector SPDR Fund ((XLY)).