Hong Kong Autonomy Act: US tariffs, sanctions, export bans ‘all on the table’ after Donald Trump signs law
- US President Donald Trump signed the Hong Kong Autonomy Act as well as an executive order on Tuesday in response to the national security law
- It confirmed the removal of Hong Kong’s special status, but potential sanctions and tariffs could violate World Trade Organisation (WTO) rules
After US President Donald Trump signed the Hong Kong Autonomy Act and an executive order that will remove the city’s preferential trade status, legal experts have warned that “all is on the table” with regard to possible punitive actions against Hong Kong.
The act contains a clear path to sanctioning individuals and the financial institutions where they bank, though extended review periods mean these may not come into force until December 2021, at the latest.
“The Hong Kong Autonomy Act is a big blow to Hong Kong and China, and is the latest example of the free-fall style of US-China relations,” said Shi Yinhong, an adviser to China's State Council and professor at Renmin University. “Now China is in a difficult position – its domestic economy needs to be improved and the international situation is hostile towards China.”
The State Department declining to certify Hong Kong’s continued justification for its special status is all that's required [to move forward with tariffs]
Trump’s executive order does not mention tariffs nor Hong Kong’s ongoing access to the US dollars payments system, but by stripping the city of its special trading status, it has opened the door to duties on the small volume of goods shipped to America, experts said.