1. Indonesia eliminates tariffs on 99% of trade with the U.S., boosting American exports. 2. U.S. tariffs on Indonesian products reduced to 19%, fostering bilateral economic growth.
The elimination of tariffs increases U.S. trade competitiveness, potentially boosting S&P 500 companies involved in exports and international trade. Historical trade agreements often positively impacted stock market indices due to increased corporate profits.
The importance score reflects significant changes in trade dynamics with Indonesia, which could influence S&P 500 performance. Enhanced export opportunities contribute to corporate growth and investor confidence.
The direct economic effects from the tariff reductions will likely be realized soon as companies adapt, similar to how the US-Mexico-Canada Agreement (USMCA) led to quick market reactions shortly after implementation.