Hong Kong halts all package shipments to the United States as President Trump’s 120% tariff hike takes effect, escalating the trade war with China.
Quick Takes
- Hong Kong’s post office has suspended all non-document parcel shipments to the U.S. in response to the Trump administration’s new 120% tariff on small-value parcels.
- The suspension comes after President Trump eliminated the “de minimis” exemption that previously allowed duty-free entry for shipments valued under $800.
- Hong Kong officials have criticized the U.S. policy as “unreasonable and bullying,” claiming it will force Hong Kong residents to pay “exorbitant fees.”
- Despite Hong Kong’s semi-autonomous status, the U.S. now treats it as part of mainland China for trade purposes following the 2020 national security law implementation.
Hong Kong Retaliates Against Trump’s Tariff Hikes
Hong Kong’s postal service announced a complete suspension of package shipments to the United States, dealing a significant blow to cross-Pacific commerce. The decision comes in direct response to President Trump’s executive order imposing a steep 120% tariff on small-value parcels from Hong Kong beginning May 2. Hongkong Post confirmed it will no longer accept non-airmail parcel shipments to the U.S. effective immediately, while airmail parcels will only be accepted until April 27. Only document-only mail will continue without interruption, as these items aren’t subject to the new tariffs.
The tariff hike represents a dramatic escalation in America’s trade strategy against China and its territories. Previously, the “de minimis” exemption allowed packages valued under $800 to enter the U.S. duty-free, creating a popular channel for e-commerce shipments. President Trump’s policy eliminates this exemption specifically for Hong Kong, initially setting a 30% tariff before increasing it to 120% through executive action. Chinese products now face tariffs of up to 245% under the new trade framework.
Hong Kong’s Status Under U.S. Trade Policy
Despite historically being treated as a separate customs territory from mainland China, Hong Kong has increasingly been pulled into U.S.-China trade tensions. The Trump administration formally revoked Hong Kong’s special trade status in 2020 following Beijing’s imposition of a sweeping national security law that critics say has effectively silenced political dissent in the territory. This policy shift means Hong Kong now faces the same punitive tariffs as mainland China despite its traditional status as a free port.
“For sending items to the US, the public in Hong Kong should be prepared to pay exorbitant and unreasonable fees due to the U.S.’s unreasonable and bullying acts” – the Hong Kong government
Hong Kong officials have responded sharply to the U.S. policy change, describing it as “unreasonable and bullying” and warning residents they would face “exorbitant and unreasonable fees” for U.S.-bound shipments. The suspension by Hongkong Post represents a direct retaliatory measure, as the postal service explicitly stated it would not collect tariffs on behalf of the U.S. government. This stance aligns with broader Chinese complaints about American trade policies under the Trump administration.
Broader Trade Strategy and International Negotiations
The Hong Kong postal service decision comes amid a broader reassertion of American trade priorities under President Trump. Concurrently, the administration has initiated tariff negotiations with Japan, with the President personally attending talks in Washington. These parallel developments underscore the administration’s multi-pronged approach to restructuring American trade relationships, particularly with Asian economies. The Hong Kong tariffs specifically target a trade loophole that critics say Chinese companies have exploited to avoid higher duties.
“The US is unreasonable, bullying and imposing tariffs abusively,” a statement from the Hong Kong government.
Some experts view the Hong Kong postal service suspension as another sign of hardening positions in the escalating U.S.-China trade standoff. The move affects countless small businesses and individual consumers on both sides of the Pacific who rely on postal shipments for commerce. While document-only mail will continue, the suspension effectively ends e-commerce shipments through Hong Kong’s postal channels, pushing businesses to either use more expensive private shipping options or reroute their supply chains through other territories not subject to the same tariff structure.
