**Hong Kong:** Escalating US-China trade war with tariffs up to 145% has led to cancellation of 41% of container shipments to North America’s west coast, severely disrupting Hong Kong’s re-export economy and threatening its critical role in global trade.
Hong Kong’s shipping industry is facing significant challenges as the ongoing trade war between the United States and China escalates. Recent statistics reveal that 41% of container capacity dedicated to shipments from Hong Kong to the west coast of North America has been scrapped for the week beginning May 12. This disruption has been attributed to the introduction of soaring tariffs and substantial interruptions to global supply chains, which are considerably impacting the territory’s re-export-driven economy.
Data compiled from Freightos and Sea-Intelligence indicates a marked increase in sailing cancellations, underscoring the extent of the trade tensions. With tariffs reaching as high as 145% imposed by the U.S. and retaliatory tariffs of 125% from China, cross-Pacific trade volumes are being severely curtailed.
Hong Kong’s pivotal role as a re-export hub renders it particularly vulnerable to shifts in global trade dynamics. Analysts have expressed concerns that any tariff levels exceeding 35% could obliterate profit margins for exporters, thus making many trade routes economically unfeasible.
The ramifications of these developments are expected to have a lasting impact on the shipping sector as well as the broader economy of Hong Kong, which heavily relies on its position as a critical node in international trade networks.
Source: Noah Wire Services
Subscribe to Industry Updates
