ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Trade war

Hong Kong's tariff loophole flourishes in US-China trade war

Washington grows skeptical of island's autonomy as Beijing expands influence

A Hong Kong container terminal. Selling Chinese products to the U.S. via Hong Kong middlemen is growing more popular as a way to save on tariffs.   © Reuters

HONG KONG -- A once-obscure rule has made Hong Kong a hot spot for companies looking to mitigate damage from the U.S.-China trade war.

Under an American tariff scheme called the "first-sale rule," exporters sending merchandise to the U.S. through multiple locations will be charged duties based on the price of the initial transaction. 

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more