A recent surge in Hong Kong’s exports masks a grim reality for frontline manufacturers, with some facing a sharp drop-off in new orders and bracing for renewed pressure on costs as a 90-day tariff truce between Washington and Beijing ends on Tuesday.
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Bryant Chan Wan-sing, president of toymaker the Wynnewood Corporation, said the sharp increase in orders during the truce was essentially a reinstatement of ones put on hold or cancelled when tariffs were introduced on US President Donald Trump’s so-called Liberation Day on April 2.
“We have maximised what we can produce and ship during this 90-day window already. Any orders received before Liberation Day that cannot be shipped during the truce will remain on hold for now,” Chan said.
“We are not seeing additional new orders either. So there is indeed a sharp contrast post-truce period, one that is similar to [the] pre-truce period.”
Hong Kong exports surged by 15.5 per cent in May from a year ago, with economists attributing the increase to the front-loading of shipments by businesses racing to beat the deadline.
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“Our company remains financially challenged with exposure to material cancellation or orders that continue to be put on hold,” Chan said.