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

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

20190130N Terminal

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.

TAKESHI KIHARA, Nikkei staff writer

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 ContentThis content was commissioned by Nikkei's Global Business Bureau.