Trump's extra 10pc tariff on China likely to slow city's economic recovery

Hong Kong’s pace of economic recovery may be slower if the United States imposes an additional 10 percent tariff on Chinese goods, said Billy Mak Sui-choi, associate professor of the department of accountancy, economics and finance at the Hong Kong Baptist University.

The US is proposing imposing tariffs on all trade partners, including Canada and Mexico, rather than specifically targeting China, but it would inevitably affect the competitiveness of Chinese goods, Mak said on radio. 

These extra duties could likely lead to higher prices in the US, driving up inflation and potentially reducing consumer spending, which could ultimately impact the Federal Reserve’s plans to cut interest rates, possibly delaying or even halting cuts, he said. 

Such a scenario would have a slight negative effect on Hong Kong’s economy, Mak pointed out. 

STAFF REPORTER