The latest round of “reciprocal” tariffs imposed by the United States has taken a toll on American importer confidence, prompting Hong Kong exporters to warn of weak sales and price inflation in two of the country’s most important spending seasons, Thanksgiving and Christmas.
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Tariffs ranging from 10 to 41 per cent took effect on August 1 in 70 jurisdictions, including many in Southeast Asia where Hong Kong exporters produce goods for the US. Washington had a deal to extend the tariff truce with China for another 90 days from August 12.
Hong Kong-listed Mainland Headwear Holdings, one of the world’s largest producers of caps and hats, said on Monday that it and its importers in the US had to share extra costs arising from tariffs, which resulted in a 20 to 35 per cent increase in marked prices.
“Importers’ purchasing atmosphere is not good in the United States,” chief operating officer Maggie Gu said.
“Since the August 1 tariffs became effective, the market expects Thanksgiving and Christmas will not be good as well and expects marked prices will be higher.”
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Shipments to the US for Thanksgiving and Christmas traditionally start in August.