Fresh US tariffs won't impact HK trade: TDC

Trade Development Council (TDC) chairman Frederick Ma said on Friday the latest round of tariffs announced by the United States would not have much of an impact on Hong Kong's trade.

The comments came as Washington unveiled new tariffs on 60 trading partners over apparent forced labour concerns, replacing an expiring global duty rolled out by US President Donald Trump this year.

The new levies, effective on Friday, range from 10 percent to 12.5 percent, and impact major economies like China, the European Union and India.

Speaking at a press conference marking the 60th anniversary of the council, Ma said the city's outlook remains bright even though he believes more changes could still be coming on the tariff front.

"Previously I mentioned that [we forecast] our exports this year to rise by 20 percent year-on-year. In fact this is a very conservative estimate, and I believe we should be able to reach it," he said.

"In addition, everyone knows that President Xi Jinping will travel to the US for a state visit on September 24, so we don't know what could happen by then, and you all know that the US president has a habit of changing his mind regularly.

"But as far as this round of tariffs is concerned, our assessment is that there'll be little impact on us," he said.

Echoing Ma, Bruce Pang, the council's director of research, said as various exemptions from US tariffs – many of which cover electronic products – "will remain in place", they would also help ease concerns as more than 70 percent of the city's exports are made up of electronics.

Separately, Sophia Chong, the council's executive director, said a new TDC office will be opened in Egypt in the coming six to nine months to allow people to consult officers as part of efforts to expand ties with markets in North Africa.

"It's a strategic location reflecting not only the African market but also Central Asia, Middle East, as well as the European market," she said.

"Actually, because Egypt also enjoys some low tariffs so if [shipments] go through Egypt and exports to Europe, this will also be [a] very strategic [move]."

Currently, the council has 51 offices worldwide, covering major markets including those on the mainland, Asia, Europe, the Americas, the Middle East and Africa.

Chong said that apart from the planned opening of the Cairo consultant office, the council would also look to "redeploy resources and manpower" to support offices located in emerging markets with promising outlooks, such as those in Almaty, Dubai, and Riyadh.

The council would also look to strengthen ties with Nordic regions by making use of its London office as well as the one in Helsinki, Finland, following increasing partnerships there on design and creative products, she added.

Edited by Aaron Tam ...