This came after the US President Donald Trump, in a stunning move, delayed the US universal tariffs against its major trading partners just hours after those tariffs took effect.
However, the latest reversal still leaves its trading partners facing 10 percent baseline tariffs.
“These sweeping tariffs are disrupting global supply chains, inflating costs for both businesses and consumers, and creating significant uncertainty for cross-border investments,” Chan said.
“While ‘economic nuclear winter’ may be an extreme term, we are certainly witnessing challenges to the global trading system unseen in a century,” he added.
Noting that the US tariffs will end with the country’s grass root residents bearing the brunt due to increased costs for groceries and daily necessities, Chan also forecasts that three major regional trading blocs will emerge later on, with one being Asia Pacific, the second grouping India, the Middle East and Europe, and the third being the Americas.
He indicated that China, as a major economy, could roll out stimulus measures to mitigate the tariffs’ impact as the nation still has ample policy room and tools to cope.
“Our country has made its stance clear: we are open to resolving trade conflicts through dialogue based on mutual respect, not intimidation,” he said.
Chan again reiterated that the SAR’s financial market remains resilient despite surging volatility as trading activity is robust while the local currency remains strong.
“All margin calls were met on time, with no signs of stress,” he said.
“No systemic irregularities have been detected.
“We will remain vigilant and agile and ready to take appropriate measures, if needed.”
Chan added that the city’s de facto central bank, the Hong Kong Monetary Authority, has set aside more than HK$50 billion to provide liquidity support for small and medium-sized enterprises.
The city, he noted, will also continue to attract strategic enterprises to set up shop in the SAR, after helping more than 80 such firms to invest around US$60 billion here and provide some 20,000 jobs.
