Hong Kong Exports Up 10.9% in First Quarter of 2025 Amid US-China Trade War

Latest official figures show imports also increased by 9.8 per cent, while value of exports for March alone increased by 18.5 per cent

 

[ABS News Service/28.04.2025]

The value of Hong Kong’s exports rose by 10.9 per cent year on year in the first quarter of 2025, while imports also increased by 9.8 per cent in the period, amid a trade war initiated by the United States.

Trade data released by the Census and Statistics Department on Monday also showed the value of the city’s exports and imports of goods increased by 18.5 per cent and 16.6 per cent respectively in March.

This followed year-on-year increases of 15.4 per cent and 11.8 per cent, respectively, in February.

In March, the value of exports increased to HK$455.5 billion (US$58.7 billion), year on year, while the value of imports recorded an annual increase of 16.6 per cent to HK$500.9 billion.

For the first quarter as a whole, the value of total exports increased by 10.9 per cent over the same period in 2024, while the value of imports of goods increased by 9.8 per cent. There was a trade deficit of HK$80.7 billion.

Commenting on the March figures, a government spokesman said: “Exports to the mainland grew strongly, while those to other major Asian economies showed mixed performance. Exports to the United States increased visibly, and those to the European Union registered a marginal increase.

“Looking ahead, global trade tensions have escalated abruptly due to the significant increases in tariffs by the United States in early April. This will pose challenges to Hong Kong’s merchandise trade performance.

“Nevertheless, the steady growth in the mainland economy, together with Hong Kong’s proactive efforts in enhancing economic and trade ties with different markets, should help buttress trade performance.”

He added the government was providing support to businesses through various measures to cope with the external challenges and would monitor the situation closely.

Financial Secretary Paul Chan Mo-po hinted in a blog post on Sunday that there had been positive first-quarter growth in the city’s exports to mainland China and Asean countries, while exports to the US also rose slightly.

Chan said he expected to see a “steady growth” of the city’s gross domestic product in the first quarter.

He pointed to a tourism boom driven by of a series of mega-events and international conferences in the city, saying they had helped boost the retail and catering sectors.

The US’ stark departure from international trade rules has upended the global trade order established since the end of the second world war.

Some observers have said the impact of the US-initiated tariff war would not be fully reflected in the first quarter of the year.

US President Donald Trump has imposed punitive “reciprocal tariffs” on targeted countries, including its allies, as a means of shrinking America’s US$1.2 trillion deficit.

China was the most heavily targeted by the US administration, which imposed cumulative tariffs of 145 per cent over several escalatory rounds, with the White House also revealing the figure to be as high as 245 per cent on some goods.

Beijing responded with tit-for-tat tariffs on US imports, at 125 per cent, and import-export controls, among other retaliatory measures.

Trump also announced a tariff increase on small parcels from the mainland and Hong Kong, raising the rate to 120 per cent under an order to end the “de minimis” exemption from May 2.

Hongkong Post stopped accepting airmail parcels from America on Sunday, having also suspended delivery of US-bound parcels by land and sea on April 16.