HSBC unveiled TradePay for Import Duties on May 7, a targeted financing solution designed for US clients facing challenges with import duty payments. This new tool arrives amid recent tariff impositions by President Donald Trump, which have triggered retaliatory measures from countries including China.
The newly launched solution enables businesses to simultaneously access credit and complete payments, resulting in more efficient settlement times and improved cash flow visibility. Furthermore, the platform ensures import duty payments are made directly by HSBC through either pre-agreed credit terms with brokers or direct Automated Clearing House (ACH) credits.
“Clients’ working capital needs are evolving – and we’re responding swiftly with solutions that deliver the most value to them,” stated Vivek Ramachandran, Head of Global Trade Solutions at HSBC. “By settling import duties directly and frictionlessly through HSBC TradePay, our US clients have more visibility and control over their working capital at the time they need it most.”
The process operates through a streamlined digital workflow. First, clients upload a payment data file via HSBCnet. Next, they can easily drawdown their loan and pay suppliers or US import duties. Finally, optional automatic loan and payment notifications provide all parties with complete visibility.
TradePay addresses several common business challenges. For companies facing seasonal working capital constraints, the solution allows immediate loan drawdown and supplier payments upon prior approval. Additionally, businesses experiencing rapid scaling can quickly access working capital to pay component suppliers earlier than usual.
Beyond simplifying payments, TradePay reduces administrative strain by eliminating the need to manually arrange supplier payments, settle import duties, and collate loan submission documentation. Notably, the platform helps facilitate the transition from paper-based operations by integrating financing and payments into one seamless journey.
The service is available to eligible HSBC Bank USA clients with import operations into the US. Through this initiative, HSBC aims to help American businesses navigate the complexities of international trade during a period of increasing tariffs and economic uncertainty.
HSBC has made $2.3 billion of trade finance available globally through its TradePay solution since 2023, amid escalating US-China trade tensions that have pushed Chinese export tariffs to an unprecedented 145%. As the US economy contracted by 0.3% in the first quarter of 2025 — marking the first GDP decline in three years — businesses face mounting challenges from trade disruptions and stockpiling of imported goods ahead of tariff implementations.
Despite the Federal Reserve maintaining base rates between 4.25% and 4.5% yesterday, significant uncertainty looms over global commerce. HSBC Bank, with assets of US$3,054 billion as of March 2025, has positioned TradePay as a strategic solution for businesses navigating these challenging waters. The platform specifically addresses evolving working capital needs by simplifying import duty payments while optimizing cash flow. HSBC US operations have consequently expanded this offering across their 58-country network while businesses wait anxiously to see how ongoing trade policy developments unfold.
HSBC expands TradePay amid global trade disruptions
The escalating trade war between the US and China has created unprecedented challenges for global commerce, with US tariffs on Chinese imports now reaching 145% and Chinese counter-tariffs hitting 125%. This hostile environment has prompted HSBC to accelerate the expansion of its TradePay solution as businesses urgently seek ways to manage disrupted supply chains and increased import costs.
Trade between these economic powers totaled approximately $585 billion last year, with the US importing $440 billion from China while exporting just $145 billion. However, shipments from China to the US are now dropping dramatically under the weight of these punitive tariffs. Container bookings from China to the US have declined by as much as 60% according to Flexport data, with some analysts predicting Chinese exports to the US could plunge by 80% over the next two years.
The practical effects of these disruptions are already visible:
- US retailers have warned about impending supply shortages, with executives from Walmart and Target privately cautioning President Trump that his tariff policy could lead to gaps on store shelves
- Many importers have paused shipments entirely, with a Freightos survey finding 33% of small businesses planning to suspend imports in response to tariffs
- Some Chinese exporters are stopping US shipments completely, with one textile company director noting that “it’s impossible to predict” how much prices will rise for US consumers
“As the world’s leading trade bank, we’re committed to supporting global businesses as a strategic partner and innovative problem solver, helping our clients navigate the complexities of global trade,” stated Ramachandran.
The World Trade Organisation (WTO) estimates Chinese exports to the US will fall by 77% this year if current tariffs remain in place. Accordingly, HSBC’s expansion of TradePay represents a critical lifeline for companies caught in the crossfire of an intensifying economic conflict that threatens to reshape global trade patterns for years to come.
