Beijing’s new counter-tariffs on certain US goods are expected to have a limited impact on the prices of American products in Hong Kong, economists have said, but one industry head has warned that local business could still suffer from weaker investment sentiment as the trade war erupted between the superpowers.
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The latest round of Beijing’s retaliatory measures against the United States included imposing additional import tariffs of 15 per cent on poultry and agricultural products, and 10 per cent on soybean, pork, beef, fruit, vegetables and dairy, sparking questions about a potential spillover on Hong Kong.
Economists highlighted the city’s status as a free port and separate customs territory from mainland China, meaning the special administrative region does not automatically implement Beijing’s tariffs on US products.
“The trade Hong Kong intermediates between the US and China is mainly electronics. [The tariffs] can still affect some food-related shipments, but the scale is relatively small and other sources may fill the gap in China’s imports,” Gary Ng Cheuk-yan, a senior economist at Natixis Corporate and Investment Bank, said on Tuesday.
“Compared to the US tariffs on ‘de minimis’ imports, China’s retaliation will have a limited impact on Hong Kong.”
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The “de minimis value” is a threshold that exempts imports from duty.