Hong Kong Halts U.S. Package Deliveries Amid Escalating Tariff War

In a significant escalation of trade tensions, Hong Kong's postal service, Hongkong Post, has announced it will suspend the handling of packages to and from the United States. This move comes in response to a recent executive order by U.S. President Donald Trump that eliminates the long-standing “de minimis” exemption for international shipments valued under $800. The exemption had previously allowed lower-value goods to enter the U.S. from Hong Kong without being subject to heavy tariffs or customs inspections.

Under the new rules, effective May 2, items from Hong Kong—including e-commerce goods—will be subjected to a 120% tariff or a minimum fee of $100 per item, increasing to $200 by June 1. In retaliation, Hongkong Post immediately halted sea mail services to the U.S. and will stop accepting air mail parcels containing goods starting April 27. Letters and document-only items will remain unaffected.

The Hong Kong government condemned the U.S. measures as “unreasonable, bullying, and abusive,” warning local residents to brace for rising consumer costs due to the need to rely on more expensive private courier services like DHL, FedEx, and UPS. These companies have confirmed that they will continue operating as usual but will monitor the situation closely.

This latest development is the result of mounting tensions between the U.S. and China, with Hong Kong caught in the middle. Since 2020, when Trump revoked the city's special trade status over concerns about declining autonomy and the imposition of a sweeping national security law by Beijing, Hong Kong has been treated the same as mainland China under U.S. trade law. This has subjected Hong Kong’s exports to steep 145% tariffs.

Despite Hong Kong not implementing retaliatory tariffs like mainland China’s 125% levy on U.S. imports, the city’s leader John Lee joined Chinese officials in denouncing the U.S. actions. During a national security event, Lee described the tariffs as a reckless act of economic pressure and pledged to file a complaint with the World Trade Organization, mirroring a similar move by China.

This suspension of postal goods services marks another blow to Hong Kong’s long-standing reputation as a free and open trading port, adding another layer of complexity for businesses and consumers amid the deteriorating U.S.-China relationship.