Trump announces tariff hike: Hong Kong Suspends Postal Service to US Amid Trade War Escalation
The Hong Kong government has announced the suspension of its postal service to and from the United States, effective immediately for sea-transported packages and starting April 27 for airborne packages. This decision comes in response to US President Donald Trump’s recent executive order eliminating the de minimis exception for items posted from Hong Kong to the US.
Background on De Minimis Exception
The de minimis exception allowed international shipments worth $800 or less to enter the US with minimal customs procedures. Trump’s administration argued that this exemption was being exploited by retailers to avoid import taxes and customs inspections. As a result, the exemption was set to expire, and goods would face tariffs of 30% starting May 2. However, Trump’s latest executive order has increased the tariff rate to 120% or a “per postal item” cost of $100 starting May 2, which will further increase to $200 on June 1.
Impact on Hong Kong’s Postal Service
The Hong Kong government has expressed strong opposition to the US decision, stating that it is “unreasonable, bullying and imposing tariffs abusively”. As a result, the public in Hong Kong may have to pay “exorbitant and unreasonable fees” due to the US’s actions. Hongkong Post will stop accepting packages transported by sea with immediate effect and airborne packages starting from April 27. However, postal items containing only documents, such as letters, will not be affected.
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Alternative Shipping Options
Companies and individuals in Hong Kong will have to rely on private couriers such as FedEx and DHL to deliver packages to the US, which will further drive up costs for consumers on top of US levies. A DHL spokesman confirmed that the company will continue to process shipments to the US and work with customers to help them keep up with the latest changes.
Hong Kong’s Position in the Trade War
Hong Kong, a semi-autonomous Chinese city, has long been known for its free and open international trading port. However, the city has been increasingly caught in the crossfire of the escalating trade war between Washington and Beijing. Exports from Hong Kong are now subject to the same 145% tariff imposed on imports from China, despite the city not following Beijing’s lead in retaliating with a 125% levy on American imports.
Response from Hong Kong’s Leader
Hong Kong’s leader, John Lee, has joined Chinese officials in criticizing the US tariffs, stating that the US is “reckless” and “full of fallacies”. Lee also announced that Hong Kong intends to file a complaint with the World Trade Organization against the US tariffs. China has already filed a complaint with the WTO, arguing that the measures violate WTO rules.
Implications for Trade Relations
The suspension of postal services between Hong Kong and the US highlights the escalating tensions between Washington and Beijing. As the trade war continues, businesses and consumers in Hong Kong will face increasing costs and challenges in shipping goods to the US. The situation underscores the need for diplomatic efforts to resolve the trade disputes and restore stability in international trade relations.
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