Hong Kong Halts Goods Shipments to U.S. as Tariff War Escalates

HONG KONG—In a dramatic escalation of the U.S.-China trade conflict, Hongkong Post announced it will suspend all postal services for goods destined for the United States, a move that takes effect for surface mail immediately and for airmail starting April 27. The suspension, which does not affect document-only mail, is a direct response to new U.S. tariff policies that eliminate duty-free treatment for items shipped from Hong Kong and sharply increase tariffs on small parcels.

A Targeted Retaliation

The Hong Kong government’s decision comes after the Trump administration announced it would end the longstanding “de minimis” exemption for low-value goods from Hong Kong, subjecting them to steep tariffs beginning May 2. The new U.S. measures are part of a broader campaign to ratchet up pressure on China, with tariffs on Chinese goods now reaching as high as 145%. Hong Kong, once treated as a separate customs territory, is now included in these measures due to Washington’s stance that the city no longer merits special status following Beijing’s imposition of a sweeping national security law.

In a statement, Hongkong Post called the U.S. actions “unreasonable, bullying and imposing tariffs abusively,” and made clear it would not collect tariffs on behalf of the U.S. government. “Hongkong Post will definitely not collect any so-called tariffs on behalf of the US and will suspend the acceptance of postal items containing goods destined to the US,” the government said.

Impact on Businesses and Consumers

The suspension is expected to hit Hong Kong’s exporters and small businesses hard. The United States is Hong Kong’s second-largest export market, accounting for nearly $38 billion in merchandise trade in 2024, with telecommunications equipment, computers, jewelry, and electronics among the top categories. Many small businesses rely on postal services to ship goods directly to American customers, and the abrupt halt has left them scrambling for alternatives or facing the prospect of refunding orders.

Hongkong Post has begun contacting senders whose parcels have not yet shipped to arrange returns and refunds, and has warned the public to expect “exorbitant and unreasonable fees” if they seek alternative shipping options.

Political and Economic Context

The move underscores the deepening rift between Washington and Beijing, with Hong Kong caught in the crossfire. Chinese officials have condemned the U.S. tariffs as an attempt to “strip Hong Kong of its vitality,” with Xia Baolong, Beijing’s top official overseeing Hong Kong affairs, calling the trade conflict “incredibly disgraceful” and vowing that intimidation would not succeed against China or Hong Kong.

Despite the mounting pressure, Hong Kong’s government has so far refrained from imposing its own counter-tariffs, emphasizing its commitment to free trade and its obligations under international law. Instead, the city has signaled it will pursue complaints through the World Trade Organization, arguing that the U.S. move violates Hong Kong’s status as a separate customs territory.

Looking Ahead

As the trade war intensifies, the suspension of goods shipments marks a new phase in the economic standoff, with ripple effects likely to be felt by businesses and consumers on both sides of the Pacific. For now, only documents will continue to flow freely between Hong Kong and the United States, a stark reminder of how geopolitics can disrupt even the most routine aspects of global commerce.