US has imposed tariffs on US$250 billion worth of Chinese goods. After the first wave of US 25% tariffs on US$34 billion worth of Chinese good, China in retaliation imposed tariffs on the same amount of American goods. Also pending approval, President Donald Trump has revealed additional 10% levy on US$200 billion worth of Chinese goods.
Hong Kong, China’s biggest trade partner, serving as a re-export hub between the two nations is sandwiched between the two sides.
Dr Billy Mak Sui-choi, Baptist University economist said, “Even if Hong Kong complains to the WTO, by the time it completes an investigation or yields any findings, the damage will have been done.”
Impact on Hong Kong Businesses
US$34 billion worth of Chinese products, the Hong Kong government said about 17% or US$7.6 billion worth of Chinese exports in question passed through the city to the US, and about 9% of US exports came via the city on the way to mainland China. The exports in question accounted for 1.4 per cent of Hong Kong’s overall trade. Hence, tariffs on goods worth US$200 billion worth of Chinese goods will hit Hong Kong economy harder. The 25% tariffs will increase the cost of businesses.