Hong Kong
CNN
—
Hong Kong’s postal service will stop handling packages coming from or going to the United States, in the latest retaliatory move amid an escalating trade war between Washington and Beijing.
In a statement published Wednesday announcing the decision, the government of Hong Kong cited US President Donald Trump’s decision last week to eliminate the so-called de minimis exception for items posted from the city to the US. The exemption applied to international shipments worth $800 or less entering the US.
“The US is unreasonable, bullying and imposing tariffs abusively,” the government said in the statement. “The public in Hong Kong should be prepared to pay exorbitant and unreasonable fees due to the US’s unreasonable and bullying acts.”
The government said the postal service, Hongkong Post, will stop accepting packages transported by sea with immediate effect and stop taking airborne packages starting from April 27. Other postal items containing only documents, for example letters, will not be affected.
The retaliatory move means companies and individuals in Hong Kong will have to pay private couriers such as FedEx and DHL to deliver packages, further driving up costs for consumers on top of US levies.
CNN has reached out to FedEx, DHL and UPS for comment.
Trump signed an executive order earlier this month raising tariffs on goods worth $800 or less sent from China, including Hong Kong, arguing it was being used by retailers to avoid import taxes and customs inspections.
Initially, the exemption was set to expire and those goods were set to face tariffs of 30% on May 2. But Trump’s latest executive order last week hiked the rates to 120% (or a “per postal item” cost of $100 starting May 2, which goes up to $200 on June 1).
The semi-autonomous Chinese city has long been known as a free and open international trading port, which charges minimal import levies and no sales tax. It previously had a special trading status with the US, which allowed goods from the city to be subject to lower tariffs and a customs process separate to that of goods from mainland China.
Trump revoked the special trade status in 2020 during his first administration, voicing concerns over the city’s deteriorating freedom and autonomy as Beijing cracked down on protests and imposed a sweeping national security law on the financial hub.
As tensions flare between Washington and Beijing, Hong Kong is increasingly caught up in the crossfire. Exports from Hong Kong are now subject to the same 145% tariff the Trump administration has slapped on imports from China, even though the city has decided not to follow Beijing’s lead in retaliating with a 125% levy on American imports.
Hong Kong’s leader John Lee, selected by a largely government-appointed, pro-Beijing committee, joined Chinese officials on Tuesday to hit back at Washington with a stern rebuttal.
“The United States’ reckless crackdown on China and Hong Kong has become a frenzy,” he said in a televised address during a national security event.
“They use trade as a weapon to impose a so-called reciprocal tariff of 145% on Hong Kong … This not only shows that the US is full of fallacies but also demonstrates the true face of the US’ self-proclaimed hegemony,” he said.
The Hong Kong chief executive said the city intends to file a complaint to the World Trade Organization against the US tariffs. China says it has already it filed a complaint with the world trade body, saying the measures violate WTO rules.
This story has been updated with additional reporting and context.