US importers urging Hong Kong manufacturers ‘to bypass levies' amid trade war
The 90-day pause on Sino-US tariffs has caused 'daily challenges' for Hong Kong manufacturers, industry veterans have said, revealing they have been receiving unlawful demands from American importers seeking to circumvent levies.
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Several told the Post that Beijing and Washington's suspension of tariffs for 90 days from May 14 had given Hong Kong exporters some respite, but they were urgently pressing ahead with plans to diversify their production bases to mitigate geopolitical risks.
The manufacturers said they were not letting their guard down despite expectations that Chinese President Xi Jinping and his United States counterpart, Donald Trump, would meet to discuss solutions.
'I expect tariffs will come down slightly to 15 to 20 per cent, but it is still very difficult to do business with the US,' said Karen Ng Pui-lam, director of luxurious underwear maker L&A Lingerie. 'No matter what, I am proactively looking for a production alternative in Vietnam and Thailand.'
Earlier in the month, the pause in the trade war saw the US agree to lower tariffs on Chinese exports from 145 per cent to 30 per cent, while China rolled back duties on American goods from 125 per cent to 10 per cent.
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Ng said the tariffs for made-in-China garments and apparel stood at 37.5 per cent during the 90-day pause.
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