Fitch: Hong Kong Banks to Feel Hardest Tariff Hit in Asia
Within Asia, lenders in Hong Kong are expected to feel the greatest impact from higher tariffs, according to a Fitch report.
US imports from Hong Kong, along with mainland China, are currently subject to the 145 percent tariffs imposed by President Donald Trump in an escalating trade war. According to a Fitch report, banks in the city could face the biggest rise in bad loans in the Asia Pacific region due to such restrictions.
«Hong Kong will see the largest rise in non-performing loans in [Asia-Pacific] in 2025, due to a lingering property sector malaise,» Fitch said, without providing a specific figure. «Higher tariffs would reinforce our deteriorating banking sector outlooks for China and Hong Kong.»
At the end of 2024, the bad loan ratio in Hong Kong’s banking sector was 1.96 percent compared to 1.5 percent a year ago.
