This week, China and the United States are expected to begin talks to ease trade tensions between the two nations. In statements made last week, HSBC President Mark Tucker emphasized that global trade is undergoing profound and transformative changes. Tucker pointed out that this shift in focus on global trade relations has increased economic uncertainty, with severe potential risks to global growth.
HSBC Holdings has launched a new credit product aimed at U.S. companies affected by tariffs imposed by President Donald Trump, which have impacted international supply chains. HSBC's TradePay platform will be expanded to directly cover the cost of tariff payments, allowing importers to obtain loans to cope with the rising costs associated with shipping products to the United States.
"By settling import duties directly and seamlessly through HSBC TradePay, our U.S. clients have greater visibility and control over their working capital," stated Vivek Ramachandran, head of Global Commercial Solutions at HSBC. With these new loans, clients' import payments will be automatically credited through pre-agreed credits with the broker using direct deductions via credits from the automated clearinghouse, allowing businesses to manage their cash flow more efficiently and settle import duties.
HSBC, being the largest commercial bank in the world and the leading international bank in China, plays a crucial role in international trade, especially between the two largest economies in the world. The United States has imposed tariffs of up to 145 percent on Chinese products, to which China has responded with retaliatory rates of 125 percent.
