Hong Kong exporters have expressed relief after a 90-day extension to a trade tariff truce between China and the US, with worries easing over potentially affected shipments bound for the world’s largest consumer market ahead of the major Thanksgiving and Christmas holiday seasons.
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But while the move provides a reprieve from the trade dispute escalating, it has not alleviated lingering uncertainties that have dampened business confidence, according to the city’s trade representatives and observers. Some companies have expanded operations to Africa and South America to reshape global supply networks.
Kennedy Wong Ying-ho, a lawmaker and honorary president of the Hong Kong Chinese Importers’ and Exporters’ Association, said the truce gave manufacturers and exporters enough time to prepare for the Thanksgiving and Christmas rush.
“I believe exporters and manufacturers will breathe a sigh of relief,” Wong said. “The year-end peak for exports will basically remain unaffected because [more expensive] flights will need to be taken if goods cannot be shipped before October.”
He added that despite the reprieve, he expected exports to decline slightly in August, following surges in May and June when companies rushed shipments before the previous 90-day truce ended in July.
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He said he believed a rebound was likely to occur in September, which was a critical month for shipments by sea to North America.