Hong Kong’s zero tariff status as a free port may enhance its position as a global jewelry hub amid the trade tariff war, with industry insiders suggesting the city could become the “only platform in the world” for quality goods at lower tax rates.
Honorary Chairman of the Hong Kong Jewelry Manufacturers’ Association Karl Shin told Sing Tao Daily, a sister publication of The Standard, that Hong Kong’s four annual jewelry exhibitions serve as key platforms for the international industry.
He highlighted that with a robust legal system, safety, no sales tax, and zero import duties on jewelry, gold, and diamonds, Hong Kong remains a crucial center for global auctions.
Shin noted that the zero-tariff advantage could strengthen the city’s status as a jewelry distribution hub amid the trade tariff war, but he also warned that “there are no winners in a tariff war” as it leads to higher prices and reduced consumer demand.
Lau Hak-bun, Chow Sang Sang Group General Manager - Retail Operations (Greater China), stated that Hong Kong excels in jewelry design, processing and testing, with many products having been exported to the US in the past.
In light of the tariff challenges, the industry may seize the chance to explore promising markets in Europe and Australia, potentially leading to an increase in orders.
“If business opportunities arise, Hong Kong merchants will undoubtedly compete for them,” he said.
Honorary Chairman of the Hong Kong Small and Medium Enterprises Association, Danny Lau Tat-pong, noted that some local merchants might lower prices on toys, watches, and other goods originally meant for the US market to sell them locally.
“If customers say they can’t afford the tax and don’t want the goods, manufacturers will need to find alternative routes,” he explained. If inventory is too high, manufacturers may offer discounts and promotions, allowing citizens and tourists to “shop for special deals.”
Cheng Wong
