Latest news with #GaryLau
HKFP
14-05-2025
- Business
- HKFP
US slashes tariffs on small parcels from Hong Kong, mainland China
The US has announced it is slashing the tariffs on small packages shipped from Hong Kong and mainland China amid a de-escalation of the trade war between the world's two biggest economies. Duties for goods sent from mainland China and Hong Kong worth under US$800 (HK$6,240) are set to decrease from 120 per cent to 54 per cent on Wednesday, according to US President Donald Trump's executive order issued on Monday. Washington ended the 'de minimis' allowance, exempting such items from US duties, on May 2, imposing a 120 per cent tariff, or a flat fee of US$100, which was set to rise to US$200 next month. According to the Monday statement, the US$100 levy remains in effect, but the plan to double the flat rate on June 1 has been scrapped. The executive order was issued shortly after Beijing and Washington agreed to drastically lower tariffs for 90 days and continue negotiations, following high-level trade talks in Geneva last weekend. Under the agreement, from Wednesday onwards, the US will reduce its tariffs on Chinese imports to 30 per cent from the previous 145 per cent, while China's duties on US imports will drop to 10 per cent, from 125 per cent. Gary Lau, chairperson of the Hong Kong Association of Freight Forwarding and Logistics, told RTHK on Wednesday that the 54 per cent duty for small packages was still on the high side, and that sellers' orders would only return to normal levels if the rate falls to between 20 and 30 per cent. He also said he expected a surge in exports with sellers taking advantage of the 90-day suspension period.
RTHK
14-05-2025
- Business
- RTHK
Logistics and SME firms brace for boom in shipments
Logistics and SME firms brace for boom in shipments Hong Kong's foreign trade is expected to rise sharply as exporters are rushing to send their shipments out to the US during the 90-day tariff pause between Beijing and Washington. Photo: RTHK Representatives from the logistics sector and small and medium-sized companies said on Wednesday Hong Kong can expect a sharp rise in outbound shipments as exporters seize the window of opportunity presented by a truce over the next 90 days in tariffs to send goods to the United States. The temporary Sino-US truce took effect at noon on Wednesday. Under the deal, the United States agreed to lower its tariffs on Chinese goods to 30 percent while China will reduce its own to 10 percent over the next 90 days. Speaking on an RTHK programme, Gary Lau, chairman of the Hong Kong Association of Freight Forwarding and Logistics, said he expects export volumes and demand to pick up as early as next week. "I think we might still need about four or five more days to digest the new measures as we have to go through the logistical procedures after all and coordinate with importers overseas," he said. "[But] I believe there'll be a more obvious turnaround next week as demand will soar significantly for local exporters during the 90-day grace period. "And there could be more demand for air freight due to increased requests from e-commerce platforms." The logistics veteran also noted that while a majority of the firms will opt to ship by sea due to cost factors, businesses with more urgent transport needs might turn to air freight, but air transport costs could soar by at least 40 to 50 percent. Following the truce, the United States also more than halved the duties for small parcels shipped from the mainland, Hong Kong and Macau to 54 percent. Such charges are under "de minimis" duties on small packages valued at less than US$800. "Now you say that the tariffs are reduced to about 50 percent, but we have a saying 'wool comes from the sheep's back', so those tariffs are still borne by consumers," Lau said. "And the tariffs are actually still too high." Lau estimated that the volume of small parcels being sent over to the United States from China under the new 54 percent tariff would only reach 70 to 80 percent of levels just before the tariff war and called for more reductions. "Our industry is currently asking that these tax rates be lowered to 20 to 30 percent, which will be within our expectations," he said. "That's why we hope the governments from the two sides might have further preferential measures for us." For his part, Andrew Kwok, president of the Hong Kong Small and Medium Enterprises Association, said he expects more positive news soon, as US President Donald Trump has said he might speak with President Xi Jinping at the end of the week. "Of course it's difficult to predict Trump's moves as he could change his mind in a couple of days," said the head of the SME body. "But I believe that it is very unpleasant for people in the US to see tariffs being increased to such an abnormal level. "So from this viewpoint, I believe it's not very likely that the tariffs will return to the high level. "For us, we are very optimistic as China has been proved strategically right in dealing with the United States, and we are looking forward to better news emerging [when Trump speaks with Xi]. Kwok also noted that the small and medium-sized enterprises in Hong Kong have been exploring new markets, such as Saudi Arabia and the United Arab Emirates.
South China Morning Post
14-05-2025
- Business
- South China Morning Post
Hong Kong ‘can expect large rise in exports' amid US-China tariff war pause
Hong Kong can expect a large increase in exports in the next two months at the latest due to merchants rushing to send their products to the United States, despite higher shipping costs in light of a 90-day pause on the country's tariff dispute with China, industry representatives have said. Following the breakthrough in talks over the weekend, the US pledged to reduce its April tariffs by 91 percentage points and by another 24 points for the next 90 days. The moves leave duties of 10 per cent in place for Chinese goods. But the 20 per cent tariff on Chinese goods imposed by the US earlier this year, which Washington said was intended to halt the flow of the illegal drug fentanyl, remains in effect. Wednesday also marked the start of the new 54 per cent duty on small packages priced up to US$800. It was previously raised from 30 to 90 per cent, and then to 120 per cent. 'We believe that many manufacturers and exporters will seize the opportunity arising from the 90-day postponement to ship as many of their products as possible [to the US],' Gary Lau Ho-yin, chairman of the Hong Kong Association of Freight Forwarding and Logistics, said. 'I expect the big increase in export volume could come as early as next week.'
