The U.S. has aggressively raised tariffs and implemented constantly changing policies, leading many buyers to request shipment suspensions and halt ongoing orders, placing heavy financial pressure on Hong Kong businesses. As a result, Wille Lin, Chairman of Hong Kong Shippers' Council, along with other business leaders, proposed that the Hong Kong government provide support in five key areas during this critical time for businesses:
- Establish a task force led by secretaries to provide systematic support.
- Disseminate the latest tariff information.
- Invite professionals to interpret tariff impacts and answer inquiries.
- Gather information on support for exporters from the Mainland government and businesses for Hong Kong enterprises to utilize.
- Allocate funds to study the situation of affected industries and seek solutions.
To understand the impact of tariffs on Hong Kong businesses, reporters spoke with over ten business leaders, who all agreed that the five proposed measures would effectively help Hong Kong businesses navigate the current crisis.
Hong Kong Businesses Struggling to Cover Costs for U.S. Clients in Financial Crisis
Regarding the impact of tariffs, one of these business leaders noted that high tariffs have caused some American clients to face financial crises, leading them to cancel or reduce orders, which puts Hong Kong businesses in a difficult situation. Other business representatives explained that unreasonable refusals to accept goods or prolonged requests for shipment delays have placed heavy financial burdens on manufacturers.
"Delaying shipments equates to postponing payments, but Hong Kong businesses still have to cover raw material costs, rent, bank interest, and other expenses. Paying over a thousand in monthly salaries is already challenging, making it easy for cash flow to become tight, forcing owners to use personal funds or even refinance properties or take personal loans to cope."
Regarding government support, Lin emphasized that several high-ranking officials have met with chamber representatives to understand the situation of Hong Kong businesses seriously. The Export Credit Insurance Corporation and the Monetary Authority have also introduced support measures, demonstrating the government's commitment to assisting local enterprises. However, many chambers hope for a task force led by senior officials, including key financial and economic officials, the Hong Kong Trade Development Council, the Productivity Council, the Export Credit Insurance Corporation, banks, logistics firms, and professionals knowledgeable about U.S. tariff policies to comprehensively address tariff impacts.
Strengthening Information Collection and Accelerating Domestic Market Development
Furthermore, due to the rapidly changing U.S. tariff policies, small and medium-sized enterprises (SMEs) struggle to keep up with information. An expert noted that larger chambers have sufficient resources to stay updated, even hiring experts for analysis, while SMEs often miss out on details. For example, the U.S. has temporarily suspended equivalent tariffs for 90 days on countries other than China, which is good news, but some SMEs were unaware of it and missed this opportunity. Therefore, business representatives hope the Hong Kong government can provide first-hand tariff information and invite professionals to interpret it and respond to inquiries.
Additionally, local governments in places like Shanghai and Jiangsu have recently held activities to promote the shift from exports to domestic sales, with several companies stepping in to help. For instance, JD.com announced a support plan for this transition, committing to procure no less than 200 billion RMB worth of products for domestic sales within the next year, assisting exporters in quickly entering the mainland market.
Business representatives also pointed out that this plan creates excellent opportunities for exporters to tap into domestic demand, and they hope the government can gather relevant information to ensure Hong Kong businesses benefit. Lastly, they hope the government will allocate funds to study the impact of tariffs on Hong Kong's economy and industries, as concrete data will help the task force understand the situation and provide targeted support.
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