Hong Kong business leaders take defensive stance as tariffs reshape costs

37% of Hong Kong leaders said they had paused major investment decisions, and a quarter have implemented hiring freezes.

Hong Kong business leaders are taking a more defensive stance in response to global tariffs, according to Sandpiper.

According to its survey, the firm found that almost all respondents in Hong Kong are passing tariff-related costs on to customers, with 16% passing on all costs, 37% most, and 36% some. This closely mirrors the global picture, where 91% of leaders reported doing the same.

Tariffs are also prompting Hong Kong companies to scale back investment. 46% of local respondents have reduced exposure to the United States, compared with 35% globally, whilst 17% have cut exposure to China and 25% to the European Union.

37% of Hong Kong leaders said they had paused major investment decisions, and a quarter have implemented hiring freezes.

Confidence in the near-term outlook remains weak. Hong Kong respondents, in line with global peers, do not expect business sentiment to recover in 2026.

When asked which markets are most likely to capture confidence over the next 12 months, none exceeded single-digit percentages; China scored 15% globally and the US 16%.

Expectations of a US–China trade agreement have shifted since April. 55% of respondents globally now believe it will take at least six months to reach a sustainable deal, whilst 5% think it may never be achieved. Earlier in the year, 67% had expected a resolution within six months.

Views on which side holds the stronger negotiating hand are sharply divided by geography. Globally, 46% point to the US and 39% to China.

In Hong Kong, however, 54% say China holds the advantage and 27% say the US. By contrast, 81% of US respondents back the US, and 92% of China-based respondents back China.