US reciprocal tariffs to impact US casino operators in Macau

Wall Street analyst Anne Ling from Jefferies Equity Research has raised concerns about potential retaliation by China against US gaming operators in Macau – including Sands China and MGM Resorts as well as Wynn Resorts – amid escalating trade tensions following US President Donald Trump’s policy actions.

Last week, Trump announced reciprocal tariffs on China and approximately 90 other countries, imposing an additional 34% tariff. These measures also apply to Hong Kong and Macau.

In her investor note yesterday [Macau time], Ling, as reported by CDC Gaming, stated that while US-leased assets in China face minimal long-term risk, stocks are under short-term pressure.

According to CDC Gaming’s report, she stated that “investors are pricing in both a meaningful recession and concerns over tariff retribution, which compresses multiples for the time being”.

She cautioned that reciprocal tariffs, an uncertain economy, and declining credit and liquidity levels could negatively impact both mass-market and VIP gambling.

Meanwhile, casinos shares advanced modesly yesterday along with the Hang Seng Index, in Hong Kong.

Hong Kong  recovered some lost ground, but nothing close to the 13.2% dive Monday that gave the Hang Seng its worst day since 1997, during the Asian financial crisis.

The Hang Seng gained 1% to 20,036.03. The Shanghai Composite index jumped 1.4% to 3,140.15 after the government investment fund Central Huijin directed state-owned companies to help support the market with share purchases.

South Korea’s Kospi picked up 0.3% to 2,334.23, while the S&P/ASX 200 in Australia climbed 2.3% to 7,510.00.

Markets in Thailand and Indonesia tumbled, however, as they reopened after holidays. Trading was suspended briefly in Jakarta when the JSX index fell more than 9%. It was down 7.6% by mid-afternoon. Thailand’s SET lost 4.2%.

In Taiwan, the Taiex lost 4%, pulled lower by losses for Taiwan Semiconductor Manufacturing Corp., or TSMC, the world’s largest computer chip maker. Its shares fell 3.8% yesterday. MDT/Agencies