Tariffs

How Does Hong Kong Affect Tariffs?

For months now pro-democracy riots and protests have been rampaging through the streets of Hong Kong, mostly peaceful and sometimes shockingly violent. These protests are demonstrations against the communist regime of China and it’s oppressive government. More than likely, you have heard of these protests and seen remarkable footage on your phone or tv. This incredible populist uprising is having impacts all over the globe and forcing celebrities, political figures and whole countries to take sides. Are they in support of the economic superpower that is China or do they empathize with the protestors who are pushing for regime change?

Regardless of your views on this topic, it is impacting your business. While US President, Donald Trump continues to rattle the tariff saber in China, the U.S. Senate put together a resolution designed to support human rights in Hong Kong. Of course, this drew stark criticism from Beijing and a direct condemnation of any legislation that would support usurping communist rule in China. These events pulled broader markets lower today, as investors attempted to digest all this information along with meeting minutes from the Federal Reserve meeting in October, that suggested rates will hold steady for now.

But what about the trade deal that was supposed to be ironed out in October and signed in November? Were we not supposed to have details of the ‘phase one’ rollback of these stifling tariffs? As predicted, these talks are expected to continue into next year, which means a deal will not be reached in 2019. As a business owner that imports and exports goods from the US, you may have made decisions for your business based on the possibility of these trade talks succeeding and these tariffs being rolled back. Perhaps you are sitting on tons of inventory now, taking up room in your warehouse or depreciating in value. The worst kind of asset for a business owner is the asset that makes no money for your business, and if you made the decision to stockpile product hoping that these talks would result in cheaper exporting fees, you made the wrong choice.

The right choice would have been to contact Tri-Link FTZ to get an understanding of how Foreign Trade Zones will help you move your inventory quickly and with lowered or deferred tariff and custom taxes. Let’s face it, these tumultuous headlines and images of fires in the streets are not going to go away anytime soon. Markets will rise and markets will fall, but it is up to you to act. It’s up to you to keep your business running, keep your employees happy and keep your family fed. Stop waiting for the ‘good news’ to ‘ding’ on your phone and make the right decision today. Contact Tri-Link FTZ, start utilizing Foreign Trade Zones as a fulcrum of your exporting and importing business, and begin shielding your company from another delayed trade talk, market swing or protest outbreak.

Published on November 20, 2019