In a significant escalation of trade tensions, Hong Kong's postal service, Hongkong Post, has announced it will cease shipping goods to the United States in response to impending higher tariffs on items from the territory. This move is tied to the impending end of the "de minimis" exemption, which has allowed postal items from China costing $800 (£604) or less to enter the US duty-free. The exemption is set to expire on May 2, 2025.
Hongkong Post issued a statement on April 16, 2025, emphasizing that it "will definitely not collect any so-called tariffs on behalf of the US," referring to the levies as "unreasonable and bullying acts." The service will stop accepting items sent by sea immediately, and air mail will be suspended from April 27, 2025. Senders have been warned of "exorbitant and unreasonable fees" that may arise from the new tariff structure.
This decision comes in the wake of US President Donald Trump's recent executive order, which effectively triples tariffs on goods valued under $800 coming from China, including Hong Kong. Previously, these goods were exempt from tariffs due to the "de minimis" rule, but with the new order, packages under this threshold are set to face tariffs of 30% starting May 2, 2025. However, Trump's latest executive order has raised these rates to a staggering 120% last week, which translates to a per postal item cost of $100 starting May 2, escalating to $200 on June 1, 2025.
The Hong Kong government has described the US actions as "unreasonable, bullying and imposing tariffs abusively." They have urged the public to prepare for the financial impact of these changes, indicating that consumers in Hong Kong and the US alike will feel the consequences of this trade conflict. The postal service's suspension of shipments will likely affect American consumers who frequently order items from popular online retailers such as Shein, Temu, and AliExpress, potentially leading to higher prices for these goods.
Hong Kong has been a special administrative region of China since 1997, governed under the principle of "one country, two systems," which grants it a high degree of autonomy. However, the increasing tensions between the US and China have put this arrangement under strain, with trade wars and tariffs becoming common points of contention.
The implications of Hongkong Post's decision are profound, as it not only disrupts the flow of goods between Hong Kong and the US but also raises questions about the future of trade relations between these two regions. As the postal service halts sea shipments immediately, businesses and consumers alike are left scrambling to adapt to the new reality.
In the wake of these developments, analysts are closely monitoring the situation, as the ongoing trade war continues to evolve. The immediate effects are likely to ripple through the economy, affecting everything from consumer prices to international shipping logistics.
As the situation develops, Hongkong Post has indicated that it will provide updates and further information regarding the suspension of services and any potential changes to tariffs. This ongoing saga highlights the complexities of international trade and the far-reaching consequences of political decisions.
In summary, Hong Kong's postal service is taking a stand against what it perceives as unreasonable tariffs imposed by the US government, marking a significant moment in the ongoing trade conflict. With the expiration of the "de minimis" exemption just around the corner, both consumers and businesses must brace for the impact of these new financial burdens.
