Businesses worried about planned 200% tariff on Chinese imports – Regulations

Local importers have expressed concern over a plan to impose a 200 percent tariff on products imported from China, warning that the move could lead to an increase in smuggling.

Indonesian Importers Association (GINSI) chairman Subandi said such a policy would have a negative impact on trade relations between Indonesia and China.

“If (Chinese products) are subjected to a 200 percent tax, it will be tantamount to closing down trade,” Subandi said on Monday, as quoted by news portal Detik.com.

“If (the government) takes this seriously, we’re done for,” he added.

According to Antara, the government plans to impose import tariffs of 100 to 200 percent on Chinese goods in response to the fallout from the trade war between Beijing and Washington. This applies in particular to clothing, steel, textiles and ceramics.

Trade Minister Zulkifli Hasan said on Friday the measure was aimed at protecting local businesses from an influx of goods from China due to “excess capacity” and “oversupply” in the country due to tariff hikes in Western markets.

GINSI chief Subandi suggested the government assess the competitiveness of domestic goods as imported goods are still cheaper despite additional shipping costs and taxes.

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