HK shippers anticipate limited impact from US tariff hike

The impact of the 100 percent tariff hike threatened by the United States on Chinese goods will be limited to local businesses, according to Hong Kong Shippers' Council chairman Willy Lin Sun-mo.

The comment followed US President Donald Trump's announcement last Friday (Oct 10) to impose the drastic tariff hike – raising the total levies to 155 percent -- starting next month in response to China's new controls on rare earth exports.

Speaking on a radio program on Monday (Oct 13), Lin disclosed that the announcement took aback the business, but that items for the upcoming Thanksgiving in the United States had already been delivered, which might alleviate immediate concerns.

"There's no practical difference between 50 percent and 150 percent tariffs as no one could do business at this point," Lin noted. 

He explained that over the past decade, nearly all manufacturing orders for the US market have shifted to factories in Southeast Asia or India, believing the new tariff may be less severe than it appears.

Additionally, Lin mentioned that Hong Kong businesses will continue to maintain their production bases in mainland China for research and development, as well as for orders from other regions.

He clarified that the move does not signify an abandonment of the US market, as some companies are actively establishing production facilities outside of China.

As leaders from both nations prepare to meet at the upcoming Asia-Pacific Economic Cooperation (APEC) leaders' summit in South Korea, Lin expressed hope that their dialogue could help ease the trade war tensions.