In a bold move to shield its domestic industries, Indonesia has announced plans to impose safeguard duties ranging from 100% to 200% on imports of footwear, clothing, textiles, cosmetics, and ceramics. Trade Minister Zulkifli Hasan emphasized that this measure aims to protect micro, small, and medium enterprises (MSMEs) from being overwhelmed by a surge of imported goods.
While the primary focus appears to be on curbing imports from China, which has been redirecting its surplus goods to markets like Indonesia due to trade tensions with the U.S., the ripple effects of such high tariffs could extend to other exporting nations, including India.
India, with its robust textile and ceramic industries, has been a significant exporter to Southeast Asian markets. The imposition of these steep tariffs by Indonesia could potentially disrupt trade dynamics, affecting Indian exporters who rely on the Indonesian market. This development underscores the need for India to reassess its trade strategies and explore alternative markets to mitigate potential losses. Moreover, this move by Indonesia highlights a growing trend among nations to adopt protectionist measures in response to global economic shifts. For India, it serves as a reminder of the importance of strengthening domestic industries while also diversifying export destinations.
As the global trade landscape continues to evolve, India’s policymakers and exporters must stay vigilant, adapting to new challenges and seizing emerging opportunities to ensure sustained economic growth.