Financial Secretary Paul Chan today (April 7) condemned the United States' newly announced "reciprocal tariffs" on nearly all trading partners as "bullying and unreasonable," warning the move has severely disrupted global economic recovery. His remarks came as Hong Kong's Hang Seng Index plummeted over 3,000 points to close at 19,828, following a US$600 million two-day wipeout in US markets.
Chan accused the US of violating WTO rules and undermining multilateral trade systems, calling the tariffs "hegemonic measures disguised as reciprocity" that are disrupting global supply chains. "This has drawn widespread opposition from the international community and financial markets," he stated during a press briefing at Government Headquarters.
Despite market turmoil, Chan emphasized Hong Kong's financial system remains robust, with the Hong Kong dollar staying strong under its peg system and normal market operations continuing. The government is maintaining 24/7 cross-market surveillance with the Securities and Futures Commission, Hong Kong Monetary Authority, and HKEX to prevent systemic risks.
The financial chief warned of continued volatility as countries implement countermeasures and central banks adjust policies, urging investors to exercise caution. "We must all practice prudent risk management and invest within our means during these uncertain times," Chan advised, noting the tariffs' ripple effects will likely persist.
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