HK economy could be victim of China-US steel tariff war
- Author:Alex
- Source:Sunny worldwide logistics
- Release Date:2018-03-14
HK economy could be victim of China-US steel tariff war
Company Profile:
Sunny Worldwide Logistics is a full-service domestic and international freight forwarder based in China.
Member of WCA ( World Cargo Alliance) , over the last 16 years, we focus on the reliable customer service and competitive transport
Sunny Worldwide Logistics is a full-service domestic and international freight forwarder based in China.
Member of WCA ( World Cargo Alliance) , over the last 16 years, we focus on the reliable customer service and competitive transport
THE move by the US to impose steel and aluminium tariffs on China's exports has sparked an outcry in Hong Kong where industry players warn of repercussions that could hit the city's stock market, investor confidence and capital markets, according to deputy to China's legislature David Wong Yau-kar, who's is also the former US Federal Reserve economist.
US President Donald Trump recently signed off on tariffs of 25 per cent on steel and 10 per cent on aluminium imports, which take effect on March 23.
Hong Kong's Commerce and Economic Development Bureau reacted by saying the government "regrets and disapproves" the US's decision, reports SCMP.
A spokesman said the bureau has recently filed a formal representation to the US and has registered "grave concern" at the General Council meeting of the World Trade Organisation.
The government will study the latest tariff in detail and "continue to pursue the matter on the WTO front and with the US administration with our justified arguments and strong grounds to minimise the impact on our industry."
Other business heavyweights in Hong Kong said while the steel and aluminium tariffs have not hurt the city's economy yet, the city must monitor the US's every move closely.
"So far, (the tariffs) have not had a huge impact on the whole (global) economy. But trade has now been used as a weapon, and that cannot be good for the trading system," Mr Wong said.
"Hong Kong is such a free economy that it is dependent on trade. Any trade wars could have profound impacts on the city. In the end, investor confidence, the stock market and the capital market would be affected.
"No one in the world agrees with Trump unilaterally (imposing tariffs)," he said. "I hope everyone could respect the free trade system."
The US Department of Commerce earlier claimed that a US$55 million trade deficit from aluminium products existed between Washington and Hong Kong from business conducted during January to October 2017.
US President Donald Trump recently signed off on tariffs of 25 per cent on steel and 10 per cent on aluminium imports, which take effect on March 23.
Hong Kong's Commerce and Economic Development Bureau reacted by saying the government "regrets and disapproves" the US's decision, reports SCMP.
A spokesman said the bureau has recently filed a formal representation to the US and has registered "grave concern" at the General Council meeting of the World Trade Organisation.
The government will study the latest tariff in detail and "continue to pursue the matter on the WTO front and with the US administration with our justified arguments and strong grounds to minimise the impact on our industry."
Other business heavyweights in Hong Kong said while the steel and aluminium tariffs have not hurt the city's economy yet, the city must monitor the US's every move closely.
"So far, (the tariffs) have not had a huge impact on the whole (global) economy. But trade has now been used as a weapon, and that cannot be good for the trading system," Mr Wong said.
"Hong Kong is such a free economy that it is dependent on trade. Any trade wars could have profound impacts on the city. In the end, investor confidence, the stock market and the capital market would be affected.
"No one in the world agrees with Trump unilaterally (imposing tariffs)," he said. "I hope everyone could respect the free trade system."
The US Department of Commerce earlier claimed that a US$55 million trade deficit from aluminium products existed between Washington and Hong Kong from business conducted during January to October 2017.