Following Trump’s removal of the “de minimis” provision that permitted Shein and Temu to sell to Americans, Hong Kong would no longer transport small packages to the United States. According to recent reports, as the trade war between Washington and Beijing heats up, Hong Kong’s postal service will stop handling shipments heading to and from the United States.
Shein and Temu are threatened due to the recent move by the Trump administration
The Hong Kong government announced the decision in a statement released on Wednesday, citing US President Donald Trump’s decision last week to do away with the so-called de minimis exception for goods sent from the United States. Shipments coming into the US from overseas that were valued at $800 or less were excluded. The administration claimed in the statement that the United States was implementing tariffs in an oppressive, intimidating, and unjustified manner. Because of the irrational and intimidating actions of the United States, the people of Hong Kong should be ready to pay unreasonably high fees.
As of April 27, the government announced that Hongkong Post, the postal service, will no longer accept parcels shipped by sea and will no longer accept packages sent by air. Other postal goods, including letters that just contain papers, won’t be impacted. In addition to US taxes, the retaliatory action will increase expenses for consumers by forcing businesses and individuals in Hong Kong to pay private couriers like DHL, FedEx, and UPS to deliver products. DHL will continue to handle shipments to the US, keep an eye on the situation, and assist customers in staying informed of any updates, a DHL representative told CNN. Moreover, recently this month, Trump signed an executive order to increase duties on items coming from China, including Hong Kong.
He claimed that retailers were using this to evade import taxes and customs inspections. The exemption was initially scheduled to end on May 2, at which point those commodities would be subject to 30% duties. Trump’s recent executive order increased postal rates to 120%, imposing a $100 fee per item starting May 2 and a $200 fee on June 1. The Chinese city of Hong Kong, which is semi-autonomous, has a reputation for being a free and open international commercial port with no sales tax and low import taxes. In the past, it enjoyed a privileged commercial status with the US that permitted its products to be subject to reduced duties and a different customs procedure than those of mainland China.
Trump’s move has led to Beijing’s protests and retaliation
In 2020, during his first term, Trump revoked the special trade status, citing concerns about the city’s waning autonomy and independence as Beijing cracked down on demonstrators and passed a comprehensive national security law on the financial hub. Hong Kong finds itself in the crosshairs more and more as Washington and Beijing’s tensions rise. Even though the city has chosen not to follow Beijing’s lead and impose a 125% levy on American imports in retaliation, Hong Kong exports are now subject to the same 145% tariff that the Trump administration previously imposed on China.
Lastly, it is important to highlight that John Lee, the leader of Hong Kong, who was chosen for the position by a pro-Beijing committee that was primarily appointed by the government, joined Chinese officials on Tuesday in delivering a forceful rebuke to Washington. According to the chief executive of Hong Kong, the city plans to complain about the US tariffs to the World Trade Organization. China claims to have previously complained to the World Trade Organization over the restrictions, claiming they are against WTO regulations.
