US tariff war ‘will not kill Hong Kong’, Trade Development Council says The US trade war “will not kill Hong Kong” given the city’s increasingly diversified exports in recent years, with only 3 per cent of goods expected to be affected, the Trade Development Council has said. Council director of research Irina Fan Yuen-yee said on Saturday that only about half of Hong Kong’s exports to the US were subject to tariffs, accounting for only about 3 per cent of the city’s total exports. “The impact of the trade war on Hong Kong, in general, is a bit painful but will not kill us,” she said at a briefing during a Beijing-organised media tour to promote the Greater Bay Area that groups leading cities in southern China. The administration of US President Donald Trump has imposed cumulative tariffs of 145 per cent on all Chinese goods over several escalatory rounds, with the White House also revealing the figure to be as high as 245 per cent for some goods. But Trump announced on April 11 an exemption from the “reciprocal tariffs” on several categories of electronic products from China that would last a month. Fan said Hong Kong had reduced its dependence on the US, with exports to the country dropping by about 9 to 10 per cent from 2017 to 2024, during which overall exports increased by 17 per cent. She added that the city’s exports to Asean and the Middle East had increased by 39 per cent and 40 per cent during the same period respectively, an indication that local companies had made preparations for the trade war. Fan said that regardless of how the tariff war would ultimately play out, it had destroyed the confidence of the business sector and raised their awareness of the risks of relying on a single market. She emphasised that the “one country, two systems” governing principle and the city’s unique role as a connector between mainland China and the international market made it the best channel for new trade and investment flows. She also highlighted that Hong Kong could benefit from being part of the bay area and act as the connector between mainland firms and the world. The council could help exhibitors seek commercial opportunities beyond the US, Fan said, adding that more exhibitors, including those from Southeast Asian countries, were eager to find cooperation partners on the mainland via Hong Kong. She also added that they had recently interviewed more than 640 exhibitors and buyers of electronic goods, and more than 90 per cent of exporters and buyers expected their sales to remain steady or increase. Data from Hong Kong’s Census and Statistics Department showed that the US was the city’s third-largest trade partner in 2024, with volume amounting to HK$501.7 billion (US$64.7 billion). Hong Kong’s top five exports to the US last year included telecommunications equipment and parts, computers and semiconductors. The US also ranked third in Hong Kong’s major export markets after the mainland and the Association of Southeast Asian Nations. https://www.scmp.com/news/hong-kong/politics/article/3308060/us-tariff-war-will-not-kill-hong-kong-trade-development-council-says?module=top_story&pgtype=subsection (ICE HONG KONG)

Fonte notizia: South China Morning Post