Will Hong Kong firms feel US tariff pinch? Trade council head cautious but upbeat

Uncertainties stemming from a reignited US tariff war will potentially cloud Hong Kong business expansion plans and dampen economic growth for the rest of the year, Trade Development Council chairman Frederick Ma Si-hang has said.

But in an exclusive interview with the Post, Ma expressed cautious optimism that a US-China trade deal could be reached by the end of the year, noting that Washington was aware heavy tariffs on Beijing would harm the economy and worsen inflation in the United States.

Last week, US President Donald Trump announced fresh tariffs on more than 60 countries, part of a shift towards a new era of protectionism. Observers also said Washington’s decision to suspend the “de minimis” rule, which allowed small packages under US$800 to enter duty-free, was set to disrupt the global e-commerce sector.

“The only certainty … is uncertainty with President Trump these days and that makes business very difficult because in business we want to have certainty. Otherwise, why would you invest? Why would you expand your business?” Ma said.

“I can tell you that if you survey any business in the world today, they will be telling you ‘I’m on a holding pattern’, ‘I don’t want to do anything’ … This is probably the biggest problem affecting the world. This phenomenon is going to hurt businesses.”

Hong Kong’s economy grew by 3.1 per cent in the second quarter of 2025 from the same period last year, partly boosted by a rush of shipments ahead of potential new tariffs.