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Lo Hoi-ying

Hong Kong’s commerce minister has dismissed concerns about the impact of an additional US tariff on the city’s goods, while warning that the government is considering filing a complaint with the World Trade Organization (WTO) over the “unreasonable” move.
Secretary for Commerce and Economic Development Algernon Yau Ying-wah said on Thursday that the government strongly disapproved of the extra 10 per cent tariff imposed on products from the city.
He also argued the move showed the United States’ disregard for Hong Kong’s status as a member of the global trade body.
“We are an independent customs territory. This move is extremely unreasonable and dismissive of WTO regulations,” he told a radio programme.
“We will look into the measure and investigate whether it violates WTO agreements. If necessary, we will not rule out taking action according to the guidelines.”
Yau said the US had made a mistake in imposing the additional tariff and called on Washington to “handle the decision prudently”.
“In the past 10 years, the US has had a trade surplus of more than US$270 billion with Hong Kong, which shows the benefits of American trade in Hong Kong,” he said.
“Not only does this measure go against WTO guidelines, it also harms the US.”
Yau also said Hong Kong’s exports to the US accounted for only 0.1 per cent of the city’s total exports and estimated that the impact of the tariff would be small.
“We have ventured into newer markets such as the Middle East, Southeast Asia and central Europe, to balance the negative impacts of geopolitics, allowing Hong Kong businesses to export to different economies,” he said.
“Hong Kong’s business sector has strong adaptability, and commerce chambers have said they are well prepared and have measures in place to handle such geopolitics, including shifting their supply chains elsewhere or seeking new markets.”

But Yau dismissed the idea of retaliatory measures against the US.
“We have to consider that Hong Kong is a free port and we do not impose tariffs,” he said.
Hui Ching, vice-chairman of the Institute of Future Cities at the Chinese University of Hong Kong, also echoed the sentiment that the US tariff would not greatly hurt the city.
Hui said the US-China trade war had been continuing for years and Hong Kong merchants were well prepared after diversifying export markets and production locations.
“The impact of the US imposing tariffs on the city is not significant,” he said.
Lawmaker Jeffrey Lam Kin-fung said the imposition of a tariff was detrimental to others without benefiting the US. He said he expected many businessmen would adopt a wait-and-see approach in the first quarter.
A day earlier, the United States Postal Service resumed services for international inbound packages from its mainland Chinese and Hong Kong counterparts, about 12 hours after suspending such arrangements.
The Hong Kong government had expressed “strong disapproval” of the temporary suspension, having earlier slammed US President Donald Trump’s imposition of the tariff on the city’s products.
A “de minimis” exemption that allowed packages worth less than US$800 to enter the US duty-free was removed as part of an executive order signed by Trump on February 1 raising tariffs on Chinese goods by 10 per cent.
Since the exemption was scrapped, goods worth less than US$800 per day would have to be declared in the US for formal entry.
Willy Lin Sun-mo, the chairman of the Hong Kong Shippers’ Council, said that the move was targeted at e-commerce retailers on the mainland and in Hong Kong.
“It’s been like a roller-coaster ride. We should wait for a day or two for the situation to clear up before mailing packages,” he told the same radio show.
He said paperwork for mailing personal items was simpler, but much more complicated for commercial items, especially when it came to online retailers.
“Retailers have to label the product and declare the cost, but US customs have the right to inspect and determine the cost of your product,” he said.
“They have the right to disagree and say you are pricing it below market rates and charge tariffs. But they will need time to come up with a formula for the taxation without affecting American consumers.”


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News

Hong Kong

Hong Kong Economy

Politics

Commerce chief Algernon Yau also warns that Hong Kong may launch a case with WTO over additional US duties


Commerce chief Algernon Yau also warns that Hong Kong may launch a case with WTO over additional US duties.


US-China relations

Donald Trump

Hong Kong minister shrugs off ‘unreasonable’ Trump tariffs, says impact minimal

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Commerce chief Algernon Yau also warns that Hong Kong may launch a case with WTO over additional US duties

Commerce chief Algernon Yau also warns that Hong Kong may launch a case with WTO over additional US duties