U.S. Trade with Hong Kong to be Affected by Policy Change
President Trump announced May 29 a change in U.S. policy that will have a significant impact on imports from and exports to Hong Kong.
Perhaps it is the most significant trade action, Trump said his administration would take steps to revoke Hong Kong's preferential treatment as a separate customs and travel territory apart from the rest of China.
This revocation is expected to result in several consequences experts' projection:
1) the extension of Section 301 additional tariffs on Chinese goods to covered products made in Hong Kong.
2) the extension of antidumping and countervailing duties on goods from China to the same goods from Hong Kong.
3) a requirement to change the country of origin labeling on goods made in Hong Kong,
4) termination of U.S. recognition of certificates of origin or other documents issued by Hong Kong authorities
5) taxation provisions in place with respect to Hong Kong
6) the U.S. will modify its controls on exports and imports of restricted technologies from and to Hong Kong.
7) banking and finance operations,
Reference: Sandler, Travis & Rosenberg