The Hong Kong Export Credit Insurance Corporation (ECIC) on Thursday introduced measures to support the export trade in Hong Kong and help enterprises expedite their expansion into new markets following the imposition of reckless tariffs by the US, including the further increase in the so-called reciprocal tariffs on Hong Kong products.

From now until June 30 next year, the ECIC will extend the free pre-shipment cover for holders of the Small Business Policy (SBP), while offering a 50 percent discount on pre-shipment risks to cover premiums for non-SBP holders, according to a government notification.

In addition, to reduce costs and assist exporters in tapping into Association of Southeast Asian Nations markets, the ECIC will reduce the premium rates for new markets, bringing the rates in line with those for traditional major markets.

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“The US has been repeatedly changing its policies, increasing tariffs within days and imposing the so-called reciprocal tariffs against Hong Kong, notwithstanding that we have never implemented any tariffs,” said Secretary for Commerce and Economic Development Algernon Yau Ying-wah.

Terming the US move as totally illogical and ungrounded, he said it once again shows Washington’s bullying act for suppressing its competitors.

“I call upon the business community to unite and face the challenges together, with a view to jointly counteracting the unreasonable coercion of the US,” he added.

Further to the Policy Address initiative on increasing the maximum indemnity percentage of the ECIC to 95 percent, the latest ECIC measures can help accelerate Hong Kong companies’ expansion into new and diversified markets, he noted.

Since the US’ announcement of the so-called reciprocal tariffs last week, the commerce chief has met representatives of major local chambers of commerce, small and medium enterprise associations and representatives of industries that are more affected by the tariffs, including the jewelry, textiles and garment, food, and aluminum industries, to listen to their views and discuss measures in response to the incident.

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The Commerce and Economic Development Bureau said it would maintain close liaison with the business community to jointly respond to the US’ unreasonable coercion.

The bureau will also provide support to the city’s small and medium enterprises through various funding schemes and support measures in managing cash flow, enhancing competitiveness and expanding into more diversified markets, it added.