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Ambrose Li

Hong Kong businesses are expected to feel the bite from Washington’s 34 per cent reciprocal tariff, with the United States being the city’s second-largest export market, accounting for US$37.9 billion in merchandise in 2024.
Beijing, meanwhile, has also hit back with a 34 per cent tariff on imported American goods in addition to existing duties, further escalating trade tensions between the world’s two biggest economies.
Almost all of the North American nation’s trading partners face a levy at least of 10 per cent due to US President Donald Trump’s executive order on Wednesday, triggering a global trade war that could dent international growth and stoke inflation.
The Post takes a look at the Hong Kong sectors that will be affected most.


1. What are the tariffs affecting Hong Kong?
The levies under Trump’s executive order on China will also apply to Hong Kong.
According to a Citi research note published earlier this week, the US’ effective tariff rate on Chinese goods has increased to about 65 per cent after Trump’s unveiling of new reciprocal tariffs and the end of the duty exemption on low-value imports.
This rate was derived by adding the new 34 per cent rate to the 20 per cent in additional tariffs imposed since Trump’s inauguration in January, as well as earlier duties applied under Section 301 of the US trade law with an effective rate of about 11 per cent.
The new 34 per cent tariffs on Chinese imports reflect a 10 per cent universal baseline, plus 24 per cent specific to the country. The 10 per cent will come into effect on April 5, while the higher reciprocal tariffs will take effect on April 9.
2. Who exports the most to the US from Hong Kong?
The “telecommunications equipment and parts” sector exported more than US$10 billion worth of goods from Hong Kong to the US in 2024, the highest among all industries, according to the Census and Statistics Department from February 2025.
This was followed by “computers” at US$3.74 billion in the same period.
Among the top five exports, “semiconductors, electronic valves and tubes, and more” ranked fifth at US$2.47 billion.
But Terence Chong Tai-leung, executive director of the Chinese University of Hong Kong’s Lau Chor Tak Institute of Global Economics and Finance, said the effects of the tariffs on the city had yet to be seen, as the measures could backfire on the US.

“These are tariffs on the whole world. Of course, those for Hong Kong and China are higher, but our competitors also have US levies,” Chong said.
“If the US does not produce a particular product, they don’t have that much of a choice, their residents will just have to pay more [to buy from Hong Kong and mainland China].”
He added that some companies might not survive the tariffs and might switch to other businesses as a result of the already low profit margins.
3. Any other industries?
Hong Kong’s “pearls, precious and semi-precious stones” sector exported US$2.79 billion worth of goods to the US in 2024, coming third, while the “jewellery” industry was fourth, contributing US$2.52 billion to the figure.
According to Chong, the figures for these trades might not necessarily reflect the actual situation because of a lack of a standard market price in the industry, which could be named by the seller.
“You could say this piece costs HK$1 million or HK$10 million. What would be its value?” he asked. “This is a global phenomenon. Products in the industry are unique, not all rings are made the same. There isn’t a price from which everyone takes reference.”
He also highlighted that Hong Kong served as an entrepot for the mainland, so such figures would include manufacturers across the border as well.


4. What about the ‘de minimis’ exemption cancellation?
The “de minimis” exemption – a reprieve from import duties for small packages with a value of US$800 or less – is also slated to be phased out on May 2.
Until then, Hongkong Post said it would temporarily maintain postal services to the US and not collect any tariffs on behalf of American authorities.
Hong Kong lawmaker Doreen Kong Yuk-foon said that it would be difficult to charge senders for US levies as the city’s postal services were not mandated to carry out orders from another government.
“Typically, in other countries, senders would have to fill in a customs declaration form, and the receiver of the parcel would have to pay the tariff,” Kong said, citing her experience elsewhere, but stressed it could be conducted another way with the US levies.
Andrew Kwok Chi-wah, president of the Hong Kong Small and Medium Enterprises Association, said the cancellation was “unreasonable” and would have a significant impact on the city’s residents and businesses.
“SMEs would be charged a tariff if they were to send samples [to the US], otherwise, you might have to fly over because it was important to see the physical objects or prototypes to examine the quality. These all enhance the cost of businesses,” Kwok said.
He added that it was hard to tell whether the extra costs would be shouldered by consumers at the moment, but stressed that there was a more “urgent need” than ever to open up new markets to diversify.
“The [Hong Kong] government has been in talks with us to go to markets such as Saudi Arabia and the United Arab Emirates. We see the European Union is also affected, we could explore more business opportunities there as well,” Kwok said.


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How will Hong Kong businesses brace for impact as US-China tariff war escalates?

The US is Hong Kong’s second-largest export market, accounting for US$37.9 billion in merchandise in 2024. Photo: Jelly Tse

US President Trump holds up a signed executive order during the tariff announcement outside the White House. Photo: EPA-EFE

Hong Kong condemns US tariffs, duty-free parcel cancellation as ‘bullying’

US President Donald Trump has signed an executive order to eliminate a duty-free exemption on small parcels from Hong Kong and mainland China. Photo: Nathan Tsui

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Pedestrians cross the road in Central. Photo: Elson Li

Beijing’s counter-tariffs on US goods to have ‘limited impact’ on Hong Kong prices

Hong Kong’s imports of US goods peaked at HK$231 billion in 2018, before declining by 13 per cent over the subsequent five years to HK$200 billion in 2023. Photo: Dickson Lee

The Hong Kong government has issued a statement expressing strong disapproval of the additional duty on products of Hong Kong, adding it would file a complaint to the World Trade Organization. Photo: Winson Wong

US consumer-oriented agricultural products accounted for 6.7 per cent of Hong Kong’s total imports in that category in 2023, according to the US Department of Agriculture. Photo: Yik Yeung-man

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The Post looks at sectors that will be affected most as exports worth billions face vastly higher duties


The Post looks at sectors that will be affected most as exports worth billions face vastly higher duties.


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US-China trade war: All stories

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Explainer | How will Hong Kong businesses brace for impact as US-China tariff war escalates?

The Post looks at sectors that will be affected most as exports worth billions face vastly higher duties

1. What are the tariffs affecting Hong Kong?