Hong Kong industry leader says ‘impossible to do business' under shifting US tariffs
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Steve Chuang Tzu-hsiung, chairman of the Federation of Hong Kong Industries, made the comments to local media on Thursday amid an escalating trade war between the United States and China, as a 125 per cent import tariff by the US kicked in on Wednesday for most Chinese goods while so-called reciprocal levies on most other markets were paused for 90 days.
'The current tariffs have already reached a point where it's impossible for anyone to do business,' said Chuang, who heads one of the four biggest business chambers in the city, said of the levy's paralysing effect on local manufacturers.
'Whether [the tariff percentage] continues to 125, 34, or 84 - it really doesn't matter any more … it's no longer a question of price, it's a question of a trade war.'
He added: 'The biggest challenge for Hong Kong businesses now is, if you continue production in mainland China, do you ship or not? Will the American buyers cancel?'
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Chuang said many Hong Kong companies operated under 'free on board' or FOB agreements, meaning sellers were responsible for loading goods onto vessels or other agreed modes of transport at the designated port of shipment.
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