HK economy could be victim of China-US steel tariff war
The move by the US to impose steel and aluminium tariffs on China's exports has sparked an outcry in Hong Kong where industry players warn of repercussions that could hit the city's stock market, investor confidence and capital markets, according to deputy to China's legislature David Wong Yau-kar, who's is also the former US Federal Reserve economist.
US President Donald Trump recently signed off on tariffs of 25 per cent on steel and 10 per cent on aluminium imports, which take effect on March 23.
Hong Kong's Commerce and Economic Development Bureau reacted by saying the government "regrets and disapproves" the US's decision, reports SCMP.
A spokesman said the bureau has recently filed a formal representation to the US and has registered "grave concern" at the General Council meeting of the World Trade Organisation.
The government will study the latest tariff in detail and "continue to pursue the matter on the WTO front and with the US administration with our justified arguments and strong grounds to minimise the impact on our industry."
Other business heavyweights in Hong Kong said while the steel and aluminium tariffs have not hurt the city's economy yet, the city must monitor the US's every move closely.
"So far, (the tariffs) have not had a huge impact on the whole (global) economy. But trade has now been used as a weapon, and that cannot be good for the trading system," Mr Wong said.
"Hong Kong is such a free economy that it is dependent on trade. Any trade wars could have profound impacts on the city. In the end, investor confidence, the stock market and the capital market would be affected.
"No one in the world agrees with Trump unilaterally (imposing tariffs)," he said. "I hope everyone could respect the free trade system."
The US Department of Commerce earlier claimed that a US$55 million trade deficit from aluminium products existed between Washington and Hong Kong from business conducted during January to October 2017.
Port Tracker report indicates growth, but fears 'tariff war' talk
The US National Retail Federation (NRF) monthly Port Tracker report expects February import containers to be up 13.7 per cent annually to 1.66 million TEU with continuing increases in volume expected throughout the year.
But tariffs announced by the White House have the potential to present a "clear and present danger" to global trade, according to Port Tracker pollster Hackett Associates CEO Ben Hackett.
March container imports, exceptionally, were expected to drop 1.8 per cent to 1.53 million TEU. But April is said to rise 4.7 per cent year on year to 1.7 million TEU while May's gain is to be 2.5 per cent is to be rise to 1.79 million TEU.
The Port Tracker report said it expects the first half of 2018 to be up 4.1 per cent at 10.2 million TEU nationwide.
Ports covered handled 1.73 million TEU, which was 0.2 per cent ahead of December's 1.72 million TEU and up 1.8 per cent year on year.
Ports covered include LA/Long Beach, Oakland, Tacoma, Seattle, Houston, NY/New Jersey, Hampton Roads, Charleston, Savannah, Miami, Jacksonville, Fort Lauderdale's Port Everglades.
"The danger is that a potential tariff war would have a negative impact on cargo growth to the detriment of both the consumer and US industry," said Mr Hackett.
"The likelihood of an increase in exports evaporates as well, killing off any chance for an improvement in the balance of trade. The art of the deal does not work in this environment," he said.
Said NRF vice president Jonathan Gold: "The immediate impact would be higher prices for American consumers that would throw away the gains of tax reform and put a roadblock in front of economic growth."
Death toll from Maersk Honam fire rises to five, shipping line says
Danish shipping giant Maersk Line say four seafarers are now confirmed to have died in the fire onboard the Maersk Honam as the remains of three of four crew missing are found onboard the vessel.
The shipping line said that the three bodies found on the vessel were as yet to be identified. Given the severe fire damage to the 15,252 TEU containership Maersk said: "We must conclude by now that we have lost all four colleagues who have been missing since the fire onboard Maersk Honam began on March 6." That would bring the death toll from the blaze to five.
"Our most heartfelt condolences go out to families of our deceased colleagues. We share their sorrow and do our outmost to support them in this devastating time," said Maersk COO Soren Toft.
The Danish shipowner said a thorough search of the vessel was continuing and it said firefighting operations were "progressing". The fire was reported to have been brought under control last Saturday.
Of the 22 survivors all have received medical treatment and the majority have been released from hospital. Maersk said that seafarers that had been in intensive care had been moved to a general ward and were recovering well.
"Our colleagues that were evacuated to local hospitals in varying conditions of health are improving and we are now preparing to bring them back to their families as their condition allows," said Palle Laursen, chief technical officer for Maersk Line.
The India Marine Police is conducting an investigation into the fire, reports Seatrade Maritime News of Colchester, UK.
The crew evacuated the Maersk Honam in the Arabian Sea on Tuesday last week after they failed in efforts to bring the fire under control.
The Singapore-flagged Maersk Honam was on enroute from Singapore to Suez with 7,860 containers, equalling 12,416 TEU, onboard at the time of the fire.
(Source:HKSG-GROUP)
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