The chairman of the Federation of Hong Kong Industries, Steve Chuang, told an RTHK radio programme that many federation members are adopting a wait-and-see approach, as the situation is changing every day.
His remarks came less than a day after Beijing announced it would further raise tariffs on US goods to 84 percent, starting at noon on Thursday.
Chuang pointed out that the amount of tariffs imposed by the US does not matter anymore, as levies have already made it impossible for businesses in the SAR to trade with the country.
“The main challenge to businesses in Hong Kong is that if they continue to manufacture the goods in China, should they go ahead with shipping?”
“Would American buyers cancel the order? All of them cannot react at the moment, including US buyers, many of them don’t know what to do now,” he said.
Chuang revealed that some trading partners in the US have decided to either put their orders on hold or cancel them.
Meanwhile, Billy Mak from the Hong Kong Baptist University said he believes the US wants to cut ties with China by imposing the hefty tariffs.
The professor from the Department of Accountancy, Economics and Finance added that unless talks are held between the world’s two largest economies, companies should rely less on US markets and seek to boost trade with Asean or countries along the Belt and Road.
And Gary Lau, chairman of the Hong Kong Association of Freight Forwarding and Logistics told the same show that Trump’s decision to triple small parcel tariffs from the mainland and SAR will hit local exports the most, as e-commerce platforms accounted for most shipments.
He revealed that many platforms are trying to ship out their orders before the measure takes effect next month.
