US president-elect Donald Trump’s plans to slap more tariffs on Chinese goods will spur mainland China-based Hong Kong manufacturers to turn to new markets such as Southeast Asia and the Middle East, in addition to hitting the city’s economy and exports, industry leaders and analysts have said.
But some Hong Kong business representatives also argued on Tuesday that the manufacturing sector was well-prepared for any new punitive measures, having weathered the Sino-US trade war that began in 2018.
Trump said on Monday he would impose an additional 10 per cent tariff on goods from China as well as a 25 per cent levy on all imports from Canada and Mexico. He previously threatened to apply a universal 60 per cent tariff on all Chinese imports.
Wingco Lo Kam-wing, president of the Chinese Manufacturers’ Association of Hong Kong, conceded the tariff increase would have an impact on companies based in the city as the European and US markets made up a significant portion of their business.
“We’ve noticed an uptick in orders recently. Maybe our partners are also concerned about the rise in tariffs,” Lo said on the sidelines of a business forum in Foshan, Guangdong province.
“We have already prepared ourselves since the trade war a few years ago and have set up factories in Southeast Asia.”