Hong Kong Trade Development Council: Tariffs have a negative impact on global trade, Hong Kong businesses should expand into new markets to cope.

The Hong Kong Trade Development Council stated that the United States' unexpected imposition of equivalent tariffs on all trading partners may have a negative impact on global trade, investment, and economic environment, but the extent of the impact will depend on the response actions taken by the United States' major trading partners. However, the response actions of the United States' major trading partners are currently unclear, and the Council will closely monitor the development of the situation. The Council pointed out that if the United States' major trading partners take corresponding tariff actions, the escalation of a trade war will severely hit global trade, investment, and economic activities. If the United States' major trading partners significantly reduce tariffs, the impact is expected to be greatly reduced. In recent years, due to geopolitical influences, many mainland and Hong Kong businesses have diversified their operations (such as outsourcing certain production processes) and actively explored new markets to adapt to the changing environment. The Council stated that it has been actively promoting new markets, enhancing Hong Kong's business advantages, and strengthening international connections through outreach efforts to help Hong Kong businesses actively develop new markets and create business opportunities, in order to mitigate the complex and changing impacts of US tariff policies. In the fiscal year 2025-2026, the Council will continue to promote Hong Kong's latest developments through large-scale promotional events, participation in overseas exhibitions and trade missions, promoting Hong Kong products and services abroad; including organizing delegations to visit ASEAN to explore opportunities in the food and health product industry, as well as in Saudi Arabia and the United Arab Emirates to capture opportunities in Middle Eastern infrastructure development; establishing a Hong Kong risk management team to assist Hong Kong companies in managing operational risks in cross-border businesses with mainland and ASEAN companies interested in expanding their business. The Council stated that it will intensify efforts to actively promote Hong Kong's advantages and opportunities to the mainland and global business community, further consolidate Hong Kong's important role as a global two-way investment and business hub, and continue to strengthen the promotion of the Hong Kong MICE industry, attracting more international and mainland enterprises to do business in Hong Kong, participate in various grand trade exhibitions and conferences, and help drive the economy of industries such as tourism, hotels, restaurants, retail, and more.