Financial Secretary Paul Chan on Sunday said he expects Hong Kong interest rates will remain high for some time because of the tariffs the US has imposed on China, Canada and Mexico.

An executive order from US President Donald Trump on Saturday introduced an additional 10 percent tariff on Chinese imports, with a rate of 25 percent for the other two countries.

Chan said the tariffs will hurt Americans more than anyone else because the extra costs incurred will be passed on to consumers.

But the resulting inflationary pressures in the US will also affect Hong Kong, he warned.

"If their inflation stays high, that should also affect us. Because after all, with the dollar peg, when US interest rates are high, rates in Hong Kong should also be high," Chan said on Commercial Radio.

"This adds to the burden of business and affects the business environment and to a degree adds constraints to asset markets. These are things that we have to fully consider."

Chan said the SAR government has made plans to deal with potential Trump policies, describing the president's governance style as "rather extreme at times".