Escalating US-China trade war 'hinders business with American buyers'

The escalating US-China trade war has made doing business with American buyers nearly impossible, regardless of how high the tariffs go, said Steve Chuang Tzu-hsiung, chairman of the Federation of Hong Kong Industries.

Chuang described the US move as “highly irrational,” adding that the biggest challenge for exporters now is the uncertainty over whether goods produced in China can be shipped.

“Buyers in the US are confused and don’t know how to respond,” he said. “Some are asking to cancel orders, while others want to delay shipments.”

The 125 percent tariff hike has effectively made US-China trade unviable, and companies should no longer harbor illusions unless dialogue between the two countries resumes, a Hong Kong academic said.

Firms should focus on developing alternative markets and consider relocating production to regions with lower tariffs or better transport efficiency—or continue manufacturing in the mainland while exporting raw materials and intermediary components, said Billy Mak Sui-choi, associate professor at Hong Kong Baptist University’s Department of 
Accountancy, Economics and Finance.

STAFF REPORTER