^{Source: Yahoo}

In a significant development in the ongoing U.S.-China trade conflict, Hongkong Post has announced the suspension of all parcel shipments to the United States. This decision comes in direct response to the U.S. government's recent elimination of the "de minimis" exemption, which previously allowed duty-free entry for goods valued under $800. The new policy imposes a 120% tariff on such shipments starting May 2, 2025. ​‍

Details of the Suspension

Effective immediately, Hongkong Post has ceased accepting surface mail parcels destined for the U.S. Airmail services will continue only until April 27, 2025. However, standard letter mail and documents remain unaffected by this suspension.

The Hong Kong government has criticized the U.S. tariffs as "unreasonable and bullying," urging residents to prepare for increased shipping costs due to the necessity of using private courier services like DHL, FedEx, or UPS. ​

Background on the Tariff Changes

The U.S. administration's decision to revoke the "de minimis" exemption is part of a broader strategy to address concerns over the influx of low-value goods from China and Hong Kong, which officials argue have been used to circumvent import taxes and customs inspections. The new policy mandates a 120% tariff on affected goods starting May 2, with plans to increase this rate to 200% by June 1. ​

This move aligns with a series of tariffs imposed by the U.S., including a 10% levy on Chinese products and a 25% tariff on all car imports, as part of efforts to address trade imbalances and protect domestic industries. ​

Implications for Trade and Consumers

The suspension of postal services for goods between Hong Kong and the U.S. is expected to disrupt trade, particularly for small businesses and consumers who rely on affordable shipping options. With the elimination of the "de minimis" exemption, the cost of importing goods from Hong Kong is set to rise significantly, potentially leading to increased prices for a variety of products.​

In 2024, U.S.-Hong Kong trade amounted to approximately $34 billion, with nearly $28 billion in U.S. exports to Hong Kong.  The new tariffs and subsequent suspension of postal services could have far-reaching effects on this trade relationship.​

Responses and Future Outlook

Hong Kong's Chief Executive, John Lee, has condemned the U.S. actions, stating that the tariffs represent a reckless crackdown and demonstrate the U.S.'s hegemonic tendencies. He announced plans to file a complaint with the World Trade Organization, seeking to challenge the legality of the U.S. tariffs. ​

As trade tensions continue to escalate, businesses and consumers on both sides are bracing for the impact of increased costs and disrupted supply chains. The situation remains fluid, with potential for further developments depending on diplomatic negotiations and policy decisions in the coming months.

‍