Hong Kong’s postal authorities has declared package delivery to and from the United States suspended, latest development in the growing trade conflict between Washington and Beijing.
Citing US President Donald Trump’s recent choice to remove the de minimis exemption for international shipments from the city to the US, the Hong Kong administration said in a statement on Wednesday. Under this policy, formerly items worth $800 or less were free from import taxes.
Describing the action as “unreasonable and bullying,” Hong Kong authorities advised citizens to get ready for much more shipping expenses. “The public in Hong Kong should be prepared to pay exorbitant and unreasonable fees due to the US’s unreasonable and bullying acts,” the statement continued.
Hongkong Post would stop receiving sea-bound packages for the US effective immediately. Beginning April 27, airborne packages will not be accepted. Letters and papers are among standard mail commodities that will stay untouched.
This suspension implies that people and companies in Hong Kong would have to depend on private courier services such as FedEx and DHL, hence increasing expenses on top of the recently applied tariffs.
Citing misuse of the exemption by shops trying to avoid import taxes and inspections, President Trump signed an executive order earlier this month raising tariffs on low-value items ($800 or less) imported from China and Hong Kong.
Originally planned to implement a 30% tax starting May 2, the modifications were dramatically accelerated last week. Starting May 2, the most recent order now adds a 120% tariff or a flat cost of $100 per mail item; on June 1, this doubles to $200 per item.
A semi-autonomous Chinese region, Hong Kong has long run as a worldwide trading centre with no sales tax and low import taxes. The city formerly had unique trading status with the United States, which let it have different customs procedures from mainland China and cheaper tariffs. The Trump administration, however, cancelled this status in 2020, claiming worries over declining liberties following Beijing’s crackdown on protesters and the enforcement of a broad national security law.
Caught in the centre of a revived geopolitical dispute, Hong Kong now confronts the same 145% export tax to the United States as mainland China. Especially, the city has avoided reflecting Beijing’s retaliatory 125% tax on American imports.
Chosen by a mostly pro-Beijing committee, Chief Executive John Lee joined Chinese officials on Tuesday to vehemently condemn the US measures. Lee stated in a televised speech at a national security conference, “The United States’ frenzied reaction to China and Hong Kong has become a frenzy.”
He went on, “They impose a so-called reciprocal tariff of 145% on Hong Kong using trade as a weapon…” This not only highlights the errors of the United States but also shows its hegemonic attitude.
Lee verified that Hong Kong intends to protest the US tariffs with the World Trade Organisation. Already filed by China is its own case contending the actions breach WTO rules.
