Govt to closely monitor US tariff hikes to safeguard HK’s interests, says John Lee

Chief Executive John Lee Ka-chiu said on Tuesday that the SAR government will closely monitor what he described as the United States’ “weaponisation of tariffs” to safeguard Hong Kong’s rights and interests, following US President Donald Trump’s threat to impose additional tariffs on China.

Trump announced last Friday a plan to impose a 100 percent tariff on Chinese goods and introduce export controls on “any and all critical software” from the US, amid an escalating dispute over China’s export curbs on rare earth minerals.

When asked for a comment before his weekly Executive Council meeting on Tuesday morning, Lee said Hong Kong’s entrepreneurs have remained agile and adaptable, noting that many have diversified their production lines and shifted their focus to emerging markets to reduce exposure to tariff risks.

He added that Hong Kong’s status as the world’s freest economy, with a simple tax regime and business-friendly environment, continues to give it a competitive edge.

“Therefore, Hong Kong will continue to enjoy boundless business opportunities and long-term benefits,” he said.

The chief executive also highlighted the establishment of the GoGlobal Task Force last week, which aims to support mainland enterprises in using Hong Kong as a springboard for international expansion — creating what he described as win-win opportunities for both Hong Kong and the Mainland.

“Hong Kong has weathered countless storms,” Lee said. “Under the ‘one country, two systems’ principle, we enjoy both the China advantage and the global advantage at the same time.”

Despite global trade tensions, Lee noted that Hong Kong’s economy grew by 3.1 percent in the first half of this year, with full-year growth expected to remain between 2 and 3 percent.

“As long as we work together to embrace change and pursue innovation, Hong Kong’s opportunities will continue to outweigh its challenges,” he said confidently.

Lee added that the government will continue implementing the seven measures announced in April in response to earlier US tariff actions, describing them as “appropriate and effective.”

These measures include leveraging national development opportunities, exploring new markets, and accelerating industrial upgrading and transformation, he said.