Trump tariffs: Hongkong Post suspends airmail parcels to the US

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New tariffs on small parcels from Hong Kong have pushed the city’s postal services to halt airmail, land and sea deliveries

SCMPEmily Tsang |
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Hongkong Post has announced that it will suspend airmail to the US from 27 April. Photo: Jelly Tse

Before you read: Hongkong Post – the city’s government-run postal services – is halting airmail parcels to the US starting April 27 due to new US tariffs that will raise shipping costs significantly. The tariffs will affect students who send parcels or shop online and likely push local businesses to explore new markets like Southeast Asia and Europe.

Think about it: How might global trade changes affect your future choices in shopping, studying abroad or even career paths – for example, in e-commerce or international business?

Hongkong Post will stop accepting airmail parcels bound for the United States starting April 27, following the postal service’s previous suspension of land and sea shipments to the US on April 16.

The government postal service cited “longer shipping times” for the earlier halt.

The move came after US president Donald Trump announced a tariff increase on small parcels from mainland China and Hong Kong, raising the rate from 90 to 120 per cent.

Trump also plans to end the “de minimis” (“pertaining to minimal things”) exemption for goods worth US$800 (HK$6,210) or less from May 2. This will raise postal fees per item from US$75 to US$100 (around HK$580 to HK$780) after May 2, and from US$150 to US$200 after June 1.

Your Voice: a new Trump trade war (long letters)

Hongkong Post called the US “unreasonable and bullying” and said the Trump administration was “imposing tariffs abusively”.

“When sending items to the US, the Hong Kong public should be prepared to pay exorbitant and unreasonable fees,” a spokesperson said.

The service will not collect these tariffs on behalf of the US.

Document-only postal items remain unaffected.

Students and families sending parcels to the US can use private couriers. But they should remain cautious, the risk means costs of these private services may increase as demand does.

People mail parcels at the General Post Office in Central. Photo: Jelly Tse

New tariffs will hit local e-commerce businesses hard

Andrew Kwok Chi-wah, president of the Hong Kong Small and Medium Enterprises Association, said companies are eyeing nearby countries unaffected by US tariffs as potential transfer hubs for US-bound packages.

Leon Lai, director of Taiwan-based e-commerce services firm 91APP, noted that the tariffs affected 10 per cent of his company’s clients.

Lai has advised them to boost local sales or expand to Southeast Asian regions, such as Malaysia and Singapore, which are growing fast as consumers, tend to use English and can understand traditional Chinese.

Stanley Lee Kei-chuen, president of the E-Commerce Association of Hong Kong, said companies would prefer to sell to the American markets because it has stronger spending power and a simpler tax system.

But now, he said those looking to diversify their business could consider other traditional and emerging markets.

In terms of traditional markets, Lee suggested focusing on Europe and Australia.

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Preparing for a long battle

On April 17, Chief Executive John Lee Ka-chiu had a closed-door meeting with local National People’s Congress (NPC) deputies and Chinese People’s Political Consultative Conference representatives to discuss the tariffs.

Lee said Hong Kong must “gear up to fight a long battle” in the escalating trade war with the US. He urged businesses to diversify risks “through expanding domestic demand and new overseas market and accelerating upgrading, transformation and brand enhancement”.

On his social media page, Lee also said that US measures showed the “true face of its hegemonic (severe) barbarism”.

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