U.S. President Donald Trump on Tuesday announced a trade deal with Indonesia, the latest pact in a bid to cement better terms with trading partners and reduce a massive trade deficit, even as the European Union readied retaliatory measures should talks between Washington and its top trading partner fail.

Around 12% of EU exports to Indonesia and Vietnam could be in trouble after the US struck bilateral agreements with the two countries

Facing significant U.S. tariffs, Jakarta and Brussels have expedited negotiations on the Comprehensive Economic Partnership Agreement.