Hong Kong’s economic recovery under threat from Trump tariffs: business leaders

Business leaders and lawmakers also warn that US move likely to increase pressure on city’s small and medium-sized enterprises

Reading Time:3 minutes

US tariffs are expected to have an adverse impact on Hong Kong’s mainstay entrepot trade businesses. Photo: Sam Tsang

Published: 2:39pm, 8 Feb 2025Updated: 8:09pm, 8 Feb 2025

Hong Kong’s economic recovery is likely to be hindered by America’s decision to impose an additional 10 per cent tariff on Chinese goods, with the move also exacerbating the woes of small and medium-sized enterprises, business leaders and lawmakers have warned.

They also said on Saturday the local government was facing increasing pressure to improve its fiscal health with the next budget, which would be unveiled later this month.

Advance figures released by the Census and Statistics Department on Monday showed the economy grew by 2.5 per cent in real terms last year, a figure at the lowest end of the government’s forecast. It was also lower than the 3.2 per cent year-on-year increase in 2023.

Willy Lin Sun-mo, chairman of the Hong Kong Shippers’ Council, said the tariffs would increase the burden on small and medium-sized businesses as they lacked the capital and manpower to expand their manufacturing facilities to locations outside mainland China.

“We will face more uncertainties under US measures as they have many ‘weapons’ and tools to take various actions,” he said.

Lin said larger companies had already expanded their production facilities to Southeast Asia, Latin America and the Middle East. The companies were also ensuring their mainland-based facilities focused on domestic consumers and markets free of trade disputes, as well as research and development, he added.