Hong Kong will halt small parcel shipments to the US following Washington’s announcement of impending tariffs, the government confirmed on Wednesday.
The move comes in response to the US government’s decision to end a customs exemption for low-value parcels from Hong Kong. This exemption, known as the “de minimis” rule, currently allows tax-free entry for shipments valued under $800. Starting May 2nd, these parcels will face a hefty 120% tariff.
A government statement said Hongkong Post would not collect tariffs on behalf of Washington, and will suspend accepting non-airmail parcels containing goods destined for the U.S. on Wednesday, since items shipped by sea take more time. It will accept airmail parcels until Apr. 27.
“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 government wrote.
It will continue accepting mail that contains only documents.
Hong Kong, is caught in the middle of the trade disputes between the U.S. and China despite being a free port.
The former British colony, which returned to Chinese rule in 1997, has trade and customs policies different from mainland China’s, under the semi-autonomy granted by Beijing during the handover. But Washington began treating it as part of China after Beijing imposed a national security law in 2020, and has applied the 145% tariffs imposed on Chinese imports.
The national security law, which China says has brought back stability to the city, has virtually silenced all dissent.
Meanwhile President Donald Trump said late on Tuesday that the cost of all products including gasoline and groceries have been coming down as the U.S. takes in “record numbers” in tariffs.
Trump also claimed inflation in the U.S. is down, without disclosing any specific data, according to a post on social media platform Truth Social.
U.S. government data released on April 10 showed consumer prices unexpectedly fell in March.
