How Hong Kong eCommerce businesses can navigate new trade realities

US trade policy is undergoing rapid changes, with new proposals, tariff revisions, and pauses emerging in real time. After a turbulent period of tariff increases (the US imposed a total of 145% tariff on China, including Hong Kong and Macau; China retaliated with a duty of 125%), US and China reached a deal on 12 May to cut tariffs for 90 days. While this may provide eCommerce businesses with some relief, the need to review market strategies remains urgent. 

These shifting trade conditions are prompting Hong Kong eCommerce businesses to take a closer look at both ends of the global commerce equation:

• Upstream: how to source goods from international suppliers amid rising tariffs and policy shifts

• Downstream: how to sell across borders while managing FX, payment complexity, and export-related duties

From higher export tariffs to retaliatory duties on US imports, global commerce is becoming increasingly complex, and companies must adapt to protect their margins and stay competitive. While challenges like rising costs and currency risks are real, they also create an opportunity to rethink sourcing strategies, strengthen supply chain resilience, and optimise how money moves across borders.

That’s where solutions like Airwallex come in – helping businesses reduce the cost and complexity of cross-border payments, improve cash flow, and stay agile in a fast-changing trade environment.

What does this mean for eCommerce businesses in Hong Kong?

Whether sourcing or selling goods, Hong Kong eCommerce brands face growing pressure across the supply chain. 

Rising export tariffs are increasing the cost of materials and goods. For brands sourcing outside China, such as Vietnam and India, they are also facing ‌reciprocal tariffs, starting from 10%, as of 2 April 2025.

For those selling US products worldwide, the retaliatory duties from foreign governments are making US exports more expensive and less competitive. For example, Canada has applied a 25% tariff on some US products as of 12 March 2025.

In fact, according to the Office of the United States Trade Representative, Hong Kong has a trade deficit with the US, with US goods trade surplus reaching US$21.9 billion in 2024.

And tariffs aren’t the only challenge. Payment friction, like misaligned currencies, settlement restrictions, and limited local payment methods, can quietly erode margins and reduce checkout conversions.

To stay competitive in international markets, businesses must go beyond shipping logistics. It’s now critical to price in local currencies, offer regionally preferred payment methods, and simplify how funds are collected and settled across borders.

These mounting pressures – from currency volatility and fulfilment delays to shifting trade policies – are prompting many eCommerce brands to reassess their supplier mix and go-to-market strategy. Many are adjusting pricing, sourcing, or operational models to stay resilient.

The importance of diversifying sourcing markets

According to HKTDC Research, 44.8% of companies that have developed eCommerce sources from outside mainland China or Hong Kong, while 35.7% of them source from the mainland and 19.6% from Hong Kong. 

With further policy changes under review, many are reassessing the risks of depending too heavily on a single-sourcing region. 

Companies with flexible, multi-country sourcing strategies will be better equipped to absorb shocks and maintain continuity as US trade policy becomes more unpredictable.

Worth noting is that India and Southeast Asian countries are expanding their manufacturing capacity and attracting global businesses with competitive labour costs, improved infrastructure, and favourable trade relationships.

Regionalising parts of the supply chain can offer cost and compliance advantages. At the same time, diversifying sourcing helps reduce risk and opens the door to better pricing, stronger logistics resilience, and new growth opportunities.

The rising complexity of selling internationally

Just as import rules are tightening, Hong Kong businesses exporting goods abroad face new challenges. The US is Hong Kong’s second-largest export market, with US$37.9 billion worth of merchandise. Before the announcement of the US tariff, according to a recent HKTDC survey, out of over 200 Hong Kong eCommerce merchants, 75.2% were looking to grow their business in Mainland China, followed by ASEAN countries (53%), the US (42.2%), and Japan (30.9%). 

The US tariff actions prompt Hong Kong eCommerce businesses to rethink their market strategy. Especially for those who primarily sell US-made products, the retaliatory duties imposed by several countries are increasing the cost for overseas buyers and dampening demand.

Even beyond trade policy, operational challenges make global selling more difficult. For example, businesses selling to international consumers often face: 

• Forced or double currency conversions, caused by payment processors that don’t support local settlement, leading to unnecessary FX charges when payments are routed through your home currency.

• Inflexible settlement rules, where payouts are automatically converted and settled in USD, even if the buyer or seller uses a different currency. 

• Limited local payment options, leading to checkout dropoff for international markets. 

Much like diversifying your supplier base can increase resilience, localising your payment infrastructure can help preserve margins and improve performance in international markets. That includes accepting local currencies, settling LFL, and automating conversions when needed.

Steps Hong Kong eCommerce businesses can take to strengthen global operations

Expanding or diversifying your global operations may seem complex, but it presents tremendous opportunities to improve resilience, reduce costs, and fuel long-term growth.

Here are five key steps Hong Kong businesses can take to get started:

1. Evaluate opportunities to diversify your supplier base: Many Hong Kong businesses are exploring new sourcing regions to reduce reliance on a single market and mitigate the impact of rising tariffs. While shifting suppliers can be complex, financial partners like Airwallex make it easier to support global operations, with local currency payments in 60+ countries and a strong presence across APAC.

2. Localise your customer experience in global markets: To stay competitive abroad, businesses must go beyond shipping and logistics. That means offering localised pricing, regionally preferred payment methods, and flexible checkout options that match buyer expectations.

3. Adapt to local market realities, from fulfilment to finance: Understanding regional logistics, production lead times, and business practices can improve supplier relationships and help avoid costly delays or miscommunications. On the financial side, optimising how you collect and settle funds can preserve margin and simplify reconciliation, especially when dealing with multiple currencies. 

4. Access government resources: The Monetary Authority of Hong Kong and local organisations have come together to support SMEs amidst tariff challenges, such as offering flexible loans and credit relief to ease cash flow problems.

5. Optimise cross-border transactions: Expanding global operations requires fast, reliable, cost-effective financial infrastructure. Airwallex helps streamline global payments and protect revenue in fast-changing trade environments.

How Airwallex supports Hong Kong eCommerce businesses expanding globally

Whether navigating tariff-related supply chain changes or adapting to customer expectations in international markets, your financial infrastructure plays a critical role in maintaining margin and momentum.

Airwallex helps Hong Kong eCommerce businesses operate more efficiently across borders – removing payment friction, preserving revenue, and accelerating growth.

With Airwallex, you can:

✔ Accept payments in 130+ currencies and settle funds like-for-like to avoid unnecessary FX fees

✔ Offer 160+ local payment methods to boost international checkout conversion and meet buyer expectations

✔ Pay suppliers and partners in over 150 countries, with 90% of transactions routed through local rails for faster, lower-cost delivery

✔ Open multi-currency accounts with local bank details in 60+ countries to collect and manage revenue across markets

✔ Save up to 80% on FX fees, thanks to access to 60+ trade currencies at interbank rates

Instead of relying on multiple providers for collections, FX, and payouts, Airwallex brings everything together in one platform, helping you stay agile in an increasingly unpredictable trade environment.

How GreenPrice reduced FX friction and improved scalability

Hong Kong-based retail network GreenPrice faced rising costs and inefficiencies when managing frequent cross-border transactions with overseas suppliers. As the company scaled, it struggled with 5-digit monthly transaction costs, slow international transfers, and the transaction limit imposed by traditional banks. 

By switching to Airwallex, GreenPrice reduced the cost per transaction to just HK$2–3, improved supplier confidence with same-day international transfers, and captured the once-missed sales opportunities with Airwallex’s transaction flexibility. 

Build a resilient global business, from sourcing to selling

The evolving trade landscape presents real challenges for Hong Kong eCommerce businesses, from rising import costs to shifting duty-free thresholds. But with the right strategy and financial tools, these headwinds can become opportunities.

Your business can stay agile and competitive, even in uncertain conditions, by diversifying your supplier base, simplifying cross-border payments, and reducing FX costs.

Airwallex gives you the infrastructure to manage global operations with confidence.

Unlock smarter global operations – ‌get started with Airwallex.

Disclaimer: The information was based on our own online research and we were not able to manually test each tool or provider. The information is provided for educational purposes only and a reader should consider the specific requirements of their business when evaluating providers. This research is reviewed every 6 months. If you would like to request an update, feel free to contact us at [email protected].