In response to the introduction of far-reaching tariffs by President Donald Trump on April 2, which led to retaliatory measures by countries such as China, HSBC $HSBA (+3,61 %) has introduced a new financial instrument for its US clients to settle import tariffs.
The product, called HSBC's TradePay for Import Duties, is designed to offer credit for import duties and simplify their payment. According to the bank, this includes direct payment of these duties either through pre-arranged credit terms with brokers or direct Automated Clearing House (ACH) credits.
Vivek Ramachandran, Head of Global Trade Solutions at HSBC, said, "By offering direct and frictionless settlement of import duties through HSBC TradePay, our US clients have greater visibility and control over their working capital at the time they need it most. "
This new tool aims to increase transparency and control for US clients amidst the changing trade landscape.