Hong Kong can expect a large increase in exports in the next two months at the latest due to merchants rushing to send their products to the United States, despite higher shipping costs in light of a 90-day pause on the country’s tariff dispute with China, industry representatives have said.
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Following the breakthrough in talks over the weekend, the US pledged to reduce its April tariffs by 91 percentage points and by another 24 points for the next 90 days. The moves leave duties of 10 per cent in place for Chinese goods.
But the 20 per cent tariff on Chinese goods imposed by the US earlier this year, which Washington said was intended to halt the flow of the illegal drug fentanyl, remains in effect.
Wednesday also marked the start of the new 54 per cent duty on small packages priced up to US$800. It was previously raised from 30 to 90 per cent, and then to 120 per cent.
“We believe that many manufacturers and exporters will seize the opportunity arising from the 90-day postponement to ship as many of their products as possible [to the US],” Gary Lau Ho-yin, chairman of the Hong Kong Association of Freight Forwarding and Logistics, said.
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“I expect the big increase in export volume could come as early as next week.”