Local business leaders assess limited impact of US reciprocal tariffs

Some sectors in the business community have indicated that the impact of the United States imposing reciprocal tariffs on imported goods from all trading partners is relatively minor as Macau is not primarily a production trade hub.

The logistics sector in Macau has suggested that, conservatively, the impact will not be significant, but they will prepare for possible responses.

U.S. President Donald Trump signed an executive order imposing reciprocal tariffs on imported goods from all trading partners.

This includes a 34% tariff on products imported from China, which also applies to Hong Kong and Macau.

Business representatives have stated that Macau is not primarily focused on production trade, so the impact is relatively limited.

With multiple countries and cities facing increased tariffs from the U.S., it is possible that other regions may move their production facilities to countries with lower tax rates, and mainland China is expected to be one of those options.

They believe Macau should continue to focus on appropriately diversifying its economy while monitoring the situation.

The executive president of the Macau Chamber of Commerce, Ng Wah Wai, said, “From Macau’s perspective, we are not just a single tourism service industry; we must also pay attention to the gradual global changes and pursue appropriate diversification.”

“From the perspective of Macau’s business community or export manufacturing, we should move in a direction of appropriate diversification granted by the nation, which will allow us to stand more firmly,” he told TDM.

In the logistics sector, the volume of exports from Macau to the U.S. has always been relatively low, so the impact will not be significant. However, the industry will prepare responses, such as utilizing alternative routes to transport goods from other regions to the U.S.

“We are seeking solutions with our partners in the U.S. or Europe to address current or future difficulties,” said Macau International Logistics and Forwarding Association director Victor Lei Kuok Fai.

“Previous strategies need to be implemented, for example, working with our clientele to determine whether they can relocate from a specific region to seek other areas, places, cities, or countries to establish a production line, thereby sending goods into the U.S. market,” he added. Staff Reporter