Hong Kong halts small package shipments to the US Following Trump’s revocation of ‘de minimis’ exemption

Hong Kong’s postal service, called Hongkong Post, has said it will stop sending small packages to the United States. This change starts right away for shipments sent by sea and on April 27 for shipments sent by air. The reason for this decision is that the Trump administration has removed a special customs rule called the “de minimis” exemption.

This rule used to let goods worth less than $800 enter the U.S. without any extra fees. Businesses shipping goods between the U.S. and both China and Hong Kong often used this rule. However, starting May 2, this exemption will no longer exist, as reported by CNN.

The Trump administration’s decision also means that tariffs (extra fees) on these shipments will go up to 120%, and by June 1, the fee will be $200 per item. Hongkong Post has said it will not collect these fees for the U.S. government, so it has no choice but to stop these shipments. However, the postal service will still send documents to the U.S.

Hong Kong refusing to send packages to US

This is the latest step in the growing trade war between the U.S. and China. Hong Kong is a Special Administrative Region of China, which means it usually has its own rules, including being a free port with different customs policies from mainland China. Due to this, Hong Kong has been a major middleman in trade between the U.S. and China. But the Trump administration’s policies have started treating Hong Kong the same as mainland China, removing its special status.

Ending the “de minimis” exemption is not the only change. The Trump administration has already put 145% tariffs on many goods coming from China, and now those same high fees apply to goods from Hong Kong. This is causing big problems for Hong Kong businesses that depend on trade with the U.S. In 2023, goods sent from Hong Kong to the U.S. were worth 34.8 billion, making up about 6.5 percent of the city’s exports, per NY Times.

Stopping small package shipments will hurt both Hong Kong businesses and consumers. Companies will now have to use pricier private shipping services like FedEx and DHL to send goods to the U.S. This will make shipping more expensive for businesses, and those costs will likely be passed on to customers. The Hong Kong government is worried this will lead to unfairly high fees for people in Hong Kong.

Hong Kong officials are strongly against the Trump administration’s actions, calling them unfair and bullying. They believe the higher tariffs are meant to weaken Hong Kong’s role as a free port. Hong Kong’s leader has said the city will file a complaint with the World Trade Organization (WTO) over these tariffs. China has also filed a similar complaint, saying the U.S. is breaking WTO rules. China’s top official for Hong Kong affairs even called the U.S. tariffs “extremely shameless” and said they were trying to “take away Hong Kong’s life.”