Trump’s Tariffs Set to Redraw Global Trade Map; Hong Kong Steps Up as Key Player: StanChart Chairman

Jose Vinals will step down at the bank’s annual general meeting in May following nine years as leader.

The departing chairperson of Standard Chartered has stated that US President Donald Trump is not expected to enforce severe tariffs on China. However, his trade strategies might lead to fresh trading connections and commercial prospects across Asia, the Middle East, and Africa.

Although Trump’s decision to increase tariffs on Canada, China, and Mexico resulted in reciprocal actions and cast doubt over worldwide economic expansion, Jose Vinals dismissed concerns about an extended and damaging trade conflict.

“Tariffs are detrimental to worldwide economic expansion and commerce, yet I am hopeful—and this is just an educated assumption—that we won’t see extremely high tariffs imposed on China,” Vinals stated during a press conference held in Hong Kong on Tuesday. The event was organized by the bank’s international advisory council.

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He believed the tariffs on China were unlikely to reach 60 per cent as feared by the market, as these tariffs would be modified after negotiations.

This month, Trump introduced tariffs of up to 25 percent on specific products coming from mainland China, Canada, and Mexico.

Vinals stated that a 10 percent tariff might decrease China’s GDP by approximately 1 to 1.5 percentage points.

He stated that this issue can be addressed through domestic policy initiatives. China boasts a fairly varied supply chain, thereby reducing the effect of these tariffs.

Regarding Mexico, Canada, and Europe, he mentioned that they would seek out new trade partners to offset the tariff.

He stated that there would be reduced trade between the global community and the U.S., with increased trading activities among the rest of the world. He envisions greater commerce between Asia and the Middle East, between Asia and Africa, and between Asia and Latin America due to these tariff implementations.

The London-headquartered lender specializing in emerging markets, with activities spanning over 50 countries across Asia, the Middle East, and Africa, was well-placed to assist clients in establishing new international trade connections, according to Vinals.

Hong Kong would be Standard Chartered’s leading market to capture international trade and wealth management business, he added, pointing to the city’s role as a “superconnector” between China and the world.

Standard Chartered announced a 19 percent rise in underlying pretax profits to $6.8 billion for the year 2024. Out of this total, 34 percent was contributed by Hong Kong, which remains its largest market.

Vinals observed that during his trip to the city, he noticed a significant contrast between present times and the period of the COVID-19 pandemic; Hong Kong International Airport was bustling, and the busy streets indicated that the city had completely bounced back from the economic downturn caused by the pandemic.

These prospects are excellent news for everyone dedicated to backing Hong Kong’s role as a global finance hub,” he stated. “We keep identifying significant opportunities both in Hong Kong and on the Chinese mainland.

After serving for nine years – which is the maximum allowed in the UK – Vinals will resign from his position as chairman at the bank’s annual general meeting on May 8. He will hand over the leadership to Maria Ramos, an experienced banker.

Prior to joining in 2016, Vinals served at the International Monetary Fund, acting as their primary spokesperson for fiscal issues.

Vinials stated that his time at the bank was fruitful, as he successfully attained the intended outcomes across three main fronts: guiding the leadership group towards concentrating on wealth management and international banking services, boosting capital adequacy and risk control measures, and refining organizational oversight.

The first item on his list once he steps down is to go on a journey with his spouse along the Spanish coastline of the Mediterranean Sea.

“I truly look forward to returning frequently to this region, especially Hong Kong and China, as I’ve formed a deep connection,” he stated. “All my trips here have been immensely enjoyable for me.”

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The article initially appeared on the South ChinaMorning Post (www.scmp.com), which is the premier source for news coverage of China andAsia.

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