US-China trade war could knock half a percentage point off Hong Kong’s economic growth, says commerce chief Edward Yau
- Yau warns further trade barriers on March 1 deadline could hit consumers
The US-China trade war could cost Hong Kong half a percentage point of economic growth, the city’s commerce chief said on Saturday, while warning increased tariffs from the end of this month could hit local consumers in the pocket.
But one local economist said that was probably an underestimate, while a business leader slammed the government for, as he saw it, failing to help smaller firms cope with the uncertain climate.
Hong Kong, nearly half of whose exports are originally from mainland China and destined for the US, is caught in the middle of the tariff feud. China and the US agreed to a 90-day truce, putting planned import tariff increases on hold to hammer out a deal. If they do not reach an agreement by March 1, the tariffs will rise from 10 per cent to 25 per cent.
Edward Yau Tang-wah, secretary for commerce and economic development, told a radio programme the direct impact of such tariffs on the city’s GDP growth would be limited to 0.5 of a percentage point.
He added, though, that the impact on the overall economy was unmeasurable.
