China has responded in kind to U.S. trade measures. Following President Donald Trump's 34% tariff on Chinese imports, Beijing hit back with its own set of tariffs, escalating the ongoing trade tensions between the two nations.
Hong Kong stocks plunged over 13% on Monday, marking their sharpest drop since the 1997 Asian financial crisis, as tensions between China and the U.S. escalated into a full-blown trade war, according to Macau Business.
On April 2, U.S. President Donald Trump unveiled a fresh wave of tariffs—ranging from 10% to 50%—impacting over 60 trade partners globally. China was hit particularly hard, facing a 34% tariff on imports, in addition to two earlier rounds of 10% tariffs imposed in February and March.
In retaliation, Beijing declared it would impose a 34% tariff on U.S. goods, effective April 10. In response, President Trump threatened an additional 50% tariff on Chinese imports, potentially bringing the total to 104%.
Meanwhile, the Xi Jinping administration has filed a formal complaint against the United States with the World Trade Organization.
Macau operators feeling the pain
Macau casino operators have taken a major hit amid the escalating tariff conflict. On April 7, local concessionaires SJM Holdings, Melco International Development, and Galaxy Entertainment all dropped to three-year lows, with losses of 18%, 16%, and 12.44%, respectively.
U.S.-based firms operating in Macau—Sands China, Wynn Macau, and MGM China Holdings—also saw sharp declines, falling 14%, 13%, and nearly 12%. All are traded on the Hong Kong Stock Exchange.
Just last week, Morningstar Investment Research cautioned that American companies in Macau face growing risks.
“We’ve revised our cost of equity estimates for Wynn, Las Vegas Sands, and MGM due to their exposure in Macao,” said analyst Dan Wasiolek, pointing to “rising geopolitical tensions” between the U.S. and China.
Adding to the strain, the U.S. has officially designated Macau as a “foreign adversary,” placing it in the same category as Russia, Iran, and North Korea.
Long term, US operators protected by expertise
Former U.S. President Donald Trump is standing by his tariff policy, even as some economists warn it could trigger a global recession.
“Sometimes you have to take medicine to fix something,” Trump said. “Other countries have treated us terribly. They took our businesses, our money, and our jobs—relocating them to Mexico, Canada, and especially China.”
Morningstar analyst Dan Wasiolek noted that the ongoing trade conflict signals a deeper move toward protectionism in the U.S. “We see this shift continuing for the foreseeable future,” he said.
Despite the economic headwinds, Wasiolek remains confident in the resilience of American casino operators in Macau.
"We’re watching the broader economic conditions closely, but we still expect all six gaming concessions to be renewed and extended beyond their 2032 expiration,” he said.
He added that China’s ambition to make Macau a premier global tourism destination will require the experience and capabilities of U.S. operators like Las Vegas Sands, MGM Resorts, and Wynn Resorts.
