US tariffs to have short-term impact on Hong Kong, finance chief Paul Chan says

Tariffs imposed by the US will inevitably have a short-term impact on Hong Kong as an international trading hub, the city’s finance chief said, as he vowed to prepare for the worst and take action to support businesses.

“As an international trading hub, Hong Kong will inevitably be affected to a certain extent in the short term,” Chan wrote in his weekly blog.

His predecessor, John Tsang Chun-wah, also warned on Sunday that US President Donald Trump’s global tariffs could lead to the collapse of the current international order and global supply chains.

Trump last week announced sweeping tariffs on his country’s global trading partners, with a fresh 34 per cent levy on Chinese goods, including those from Hong Kong.

When combined with the existing duties on Chinese goods, the tariffs will go up to 54 per cent. In a tit-for-tat move, Beijing said on Friday it would impose a 34 per cent tariff on imported American goods.