Dumping cargo at sea to avoid tariffs ‘irrational’ move, Hong Kong shippers say
Industry experts issue warning over ‘lose-lose’ move after Chinese exporter abandons goods at sea on way to US
Hong Kong shippers and trading groups have urged exporters not to dump shipments mid-voyage to avoid crushing US tariffs, warning that the “irrational” move will incur huge costs while tarnishing the reputation of the company involved and the country.
Willy Lin Sun-mo, chairman of the Hong Kong Shippers’ Council, said he had not heard of similar cases involving local exporters, but cautioned that such acts had severe consequences.
“This is highly irrational and irresponsible as dumping the goods at sea will mean the exporter will lose everything, including effort and money. Apart from losing the cargo, it will fail to claim insurance for failing to fulfil contractual obligations and risks being sued by the importer or potential customers for damages,” he said.
“The move will not only severely hurt its reputation and deter overseas buyers, leading to diminishing orders, but also tarnish China’s trade reputation, which will be a lose-lose for everyone.”
US President Donald Trump clarified on Thursday that Chinese imports would be tariffed at 145 per cent, while implementing a 90-day pause that set levies at a “baseline” 10 per cent for most countries.