In a bold move, Hong Kong’s postal service has announced a suspension of all package shipments to and from the United States, escalating tensions in the ongoing trade war between Washington and Beijing. This action follows U.S. President Donald Trump’s decision to eliminate a crucial exemption for small shipments, fueling yet another round of retaliation.
Hong Kong’s government released a statement on Wednesday, explaining the reasoning behind this drastic step. The government condemned the recent U.S. decision to remove the de minimis exception, which had previously allowed shipments valued at $800 or less to enter the U.S. without facing customs tariffs. The statement echoed the city’s frustration, describing the U.S. as “unreasonable” and accusing it of “bullying” Hong Kong with its punitive tariffs.
“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 statement read, reflecting the anger mounting in the city. As a result of this latest development, Hong Kong Post, the official postal service, will cease handling sea freight shipments immediately, with air shipments also suspended from April 27 onwards. However, letters and other document-only items will remain unaffected by these restrictions.
For businesses and individuals in Hong Kong, the suspension means a reliance on private courier services such as FedEx and DHL, pushing shipping costs even higher. This comes at a time when the U.S. tariffs on smaller goods—now set to increase to 120%—are already placing considerable financial strain on consumers.
The Cause of the Dispute: Trump’s Tariff Hike
Earlier this month, President Trump signed an executive order raising tariffs on goods worth $800 or less that are shipped from China, including Hong Kong. The move aimed to curb what the administration called “tax avoidance” by retailers using Hong Kong as a shipping hub. As of May 2, shipments under $800 will face tariffs up to 120%, a significant increase from the original 30% scheduled for May 2.
Previously, Hong Kong enjoyed special trade privileges with the U.S. due to its status as a free port, with minimal import taxes and a separate customs process from mainland China. However, in 2020, Trump revoked this special trade status, citing concerns over the city’s diminishing autonomy and increased Chinese influence following the imposition of a national security law by Beijing.
Hong Kong’s Retaliation: Trade Tensions Escalate
As tensions between Washington and Beijing continue to flare, Hong Kong finds itself increasingly caught in the middle. While the city’s exports are now subject to the same punitive 145% tariff as goods from mainland China, Hong Kong has refrained from mirroring Beijing’s retaliatory actions, notably avoiding imposing its own tariffs on American goods.
Hong Kong’s Chief Executive, John Lee, strongly condemned the U.S. actions during a televised speech on Tuesday, labeling them a “frenzy.” Lee stated that Washington’s aggressive tactics demonstrate a deep-seated hypocrisy and a self-declared global dominance that is ultimately unjust.
“The United States’ reckless crackdown on China and Hong Kong has become a frenzy,” he said. “They use trade as a weapon to impose a so-called reciprocal tariff of 145% on Hong Kong. This not only shows that the U.S. is full of fallacies but also demonstrates the true face of the U.S.’s self-proclaimed hegemony.”
In response, Lee revealed that Hong Kong intends to take legal action against the U.S. by filing a formal complaint with the World Trade Organization (WTO). Meanwhile, China has already lodged a similar complaint with the WTO, arguing that the U.S. tariffs violate international trade regulations.
What’s Next?
The world watches closely as both Hong Kong and China prepare to escalate their responses to what they view as U.S. overreach. While Hong Kong braces for the impact of higher shipping costs and strained international relations, the broader global trade environment could face significant disruption as the trade war intensifies.
With both economic and political stakes rising, the ongoing conflict over tariffs shows no sign of abating. The situation remains fluid, with Hong Kong’s next steps likely to shape the course of future trade negotiations between these major global powers.
Stay tuned as we continue to track developments in this high-stakes trade war.
