The US Tariffs Impact on Hong Kong: Staying Competitive with Government Support

As the U.S. reintroduces tariffs on goods linked to mainland China, Hong Kong-based exporters and manufacturers face renewed pressure on costs, margins, and global competitiveness.

While global trade tensions mount, Hong Kong is doubling down on its strengths, reinforcing its free port status and rolling out strategic government support to help businesses adapt and thrive locally.

This article explores the US tariffs impact on Hong Kong and its business environment, and more importantly, how Hong Kong’s government funding schemes are designed to help companies stay competitive and strengthen their operations and offerings from within the city.

Tariffs Are Rising, but So Is Hong Kong’s Business Resilience

The United States’ revived tariff measures, targeting sectors like electronics, lighting, plastics, and other industrial goods, are already sending ripple effects through Hong Kong’s manufacturing and export community. 

Bulk orders are shrinking, production costs are under pressure, and businesses are re-evaluating how to sustain growth in a more protectionist environment.

In the face of these external challenges, Hong Kong is standing firm on its foundational principles: free trade, low taxes, and open market access. 

Financial Secretary Paul Chan recently reaffirmed the city’s status as a free port, emphasising that Hong Kong will not retaliate with countermeasures and remain open and predictable for global business.

A Free Port with Strategic Government Support

What sets Hong Kong apart in today’s turbulent trade landscape is the government’s proactive stance. Rather than waiting for global policies to change, the city is backing its business community through targeted funding schemes that promote transformation, innovation, and competitiveness—all while remaining based in Hong Kong.

These programmes are not just for startups—they’re for manufacturers looking to upgrade, exporters needing new outreach channels, and SMEs ready to digitise their operations in response to new global demands.

5 Government Schemes Helping Hong Kong Businesses Stay Competitive

Here are some of the most relevant schemes that businesses can tap into right now:

1. BUD Fund (Branding, Upgrading, and Domestic Sales)

• Up to HK$7 million in funding
• Supports upgrading products, enhancing operations, and brand repositioning
• Particularly useful for companies needing to improve value-added offerings in light of tariffs

2. SME Export Marketing Fund (EMF)

• Up to HK$800,000 in cumulative support
• Covers global marketing campaigns, trade show participation, and digital outreach
• Enables businesses to continue winning overseas customers—without relocating their operations

3. Technology Voucher Programme (TVP)

• Covers 75% of tech-related upgrades (up to HK$600,000)
• Encourages automation, eCommerce platforms, and process efficiency to manage rising costs

4. Cyberport & HKSTP Programmes

• Provide funding, mentoring, and infrastructure support for tech-driven growth
• Excellent for businesses exploring smarter delivery, inventory, or customer engagement systems

5. Reindustrialisation & Technology Training Programmes (RFS & RTTP)

• Promote high-tech transformation and upskilling
• Designed to help local industries stay advanced and agile amidst shifting global supply chain demands

You Don’t Have to Leave Hong Kong to Compete Globally

Many business owners are asking: Should I move operations overseas? The answer, increasingly, is no. With strategic use of government support, Hong Kong businesses can upgrade locally, expand market reach, and improve efficiency—all while benefiting from the city’s stable legal system, efficient banking environment, and free trade infrastructure.

Whether you’re a manufacturer under margin pressure or a services firm supporting global clients, these schemes offer tangible support tailored to today’s economic reality.

Where To Next?

Applying for government grants can be complex. From identifying the right funding path to preparing project scopes, documentation, and compliance reporting—this is where InCorp Hong Kong steps in.

We work alongside business leaders to ensure they receive the full benefit of what Hong Kong has to offer, especially when navigating uncertainty like today’s tariff-driven trade landscape.

Let’s help you transform pressure into progress—right here in Hong Kong.