Trump’s reciprocal tariff plan to hurt Hong Kong, mainland manufacturers: experts
But blanket approach may eliminate competitive edge of producers in other Asian countries, insider says
Hong Kong and mainland Chinese manufacturers will be hit by Donald Trump’s planned reciprocal tariffs on all imports given the difficulty of replacing the United States market with alternatives, but the blanket penalty approach may eliminate the competitive edge of producers in other Asian countries as well, experts have said.
Trump on Thursday announced plans for customised reciprocal tariffs on all imports, citing duties imposed on American goods by other countries.
The new levies would take effect after a six-month assessment by the Office of Management and Budget, with the US Trade Representative and the Commerce Department responsible for proposing new tariffs on a country-by-country basis.
The tariffs might affect Hong Kong’s HK$295.57 billion (US$37.98 billion) worth of exports to the US, as of 2024, according to data from the Census and Statistics Department. The US is Hong Kong’s second-largest export market after mainland China.
Danny Lau Tat-pong, honorary chairman of the Hong Kong Small and Medium Enterprises Association, expressed frustration over the policy’s unpredictability.
“It seems there are new tariff policies introduced every day, and no one knows what other changes may be coming,” he said. “It makes it difficult for enterprises to prepare for changes.”