HK Firms Were Ready For New Tariffs: Edward Yau

Commerce minister Edward Yau says Hong Kong businesses have reacted calmly to the latest US tariffs hike that came into effect on Friday because they have been expecting the move since last year.

At 12:01am in Washington on Friday, the Trump administration raised import taxes on US$200 billion of Chinese imports from 10% to 25%, ushering in another round of the trade spat despite talks going on Washington to resolve the dispute between the two nations.

But as much as businesses were prepared for the move, Yau admitted that the new sanctions will hurt the SAR's economic growth.

Speaking after a meeting with chamber representatives, he said the tariffs are a burden for manufacturers, retailers and consumers, and any extra cost for trade has a negative impact on the international business environment.

"Nobody wishes to see ... the US using tariffs as a trade protectionist measure to stop trade," Yau said.

He said ultimately the US importers will also have to pay the price.

The secretary said the government will look into helping firms by expanding insurance measures for exporters.

Aron Harilela, chairman of the Hong Kong General Chamber of Commerce, said they are talking to the government about what can be done to help SMEs during this time.