Once effective, the rule will subject goods originating from Hong Kong to the same tariffs currently in place on Chinese-origin goods, including additional tariffs of 7.5% to 25% on approximately $370 billion worth of Chinese-origin products. The resulting impact will affect companies that modified their supply chains to rely on Hong Kong as a viable alternative to mainland China and avoid Section 301 Tariffs. According to the U.S. Census Bureau, total Hong Kong imports through the first half of 2020 alone totaled approximately $6 billion, already exceeding the region’s total imports for the entirety of the previous year.

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