The manufacturers of Hong Kong threatens work cuts, closure towards Trump tariffs: experts

Washington’s decision to impose Chinese goods mutual tariffs could force the manufacturers of Hong Kong to lower or even close jobs because many companies have difficulty controlling global trading frects have warned analysts.

Experts also said that the comprehensive tariffs would create a vicious circle in which consumption in the United States would be greatly reduced due to increasing prices for imported goods, which means that exporters from Hong Kong, which would survive for the survival of demand and the risk of increasing interest rates.

“The comprehensive tariffs of the USA have addressed all Chinese wherever they are. Regardless of where Chinese exporters move, they are subject to the high tariffs there,” Dennis NG Kwok-On, Vice President of the Chinese manufacturer Association of Hong Kong, told The Post.

“There is no way out now, and nothing can be done. Chinese manufacturers are drawn to other places such as Vietnam and Cambodia to ward off this risk, but now this is inevitable.

“The manufacturers of Hong Kong will face employees or even bankruptcy, as they cannot endure the massive tariffs themselves and pass on the additional costs to consumers who will reduce the business.”

Ng said the only way out could be that such companies move to Mexico, which was excluded from the latest US tariffs. Mexico is still subject to previous tariffs.

The executive council and the legislator Jeffrey Lam Kin-Fung said that many companies immediately came to the fore in the conversion of their production lines to Southeast Asian countries.