US-Hong Kong Trade War Escalation

Descrease article font size

Increase article font size

Introduction to the Trade War

In the latest escalation of U.S. President Donald Trump’s global trade war, Hong Kong says it will no longer handle packages coming from or shipping to the U.S.

The Hong Kong government says in a statement that the move comes after the U.S. announced last week that it would eliminate the “duty-free de minimis” exception for items that would normally be shipped to Americans.

That exception applied to all international postal goods that were valued at or under US$800 that entered the country from China and Hong Kong, according to a fact sheet published by the White House on the change.

“For sending items to the U.S., the public in Hong Kong should be prepared to pay exorbitant and unreasonable fees due to the U.S.’s unreasonable and bullying acts,” the statement reads.

Story continues below advertisement

Consequences of the Trade War

“The U.S. is unreasonable, bullying and imposing tariffs abusively.”

1:36
Trump hikes tariffs on China to 125%

Impact on Shipping and Trade

The Hong Kong government went on to say it would suspend the acceptance of any items shipped by sea starting immediately, while items shipped by air will no longer be accepted after April 27.

Get breaking National news

For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen.

Senders who have posted items that have not yet been shipped will be contacted to arrange the return of items and a refund on postage starting April 22.

Postage containing only documents, however, will still be accepted.

It’s the latest ripple effect being seen amid tariffs imposed by each country on the other.

As of Wednesday, U.S. tariffs on Chinese imports sit at 145 per cent, while China’s on U.S. products are at 125 per cent.

Conclusion

The trade war between the US and Hong Kong has escalated, with Hong Kong announcing that it will no longer handle packages coming from or shipping to the US. This move is in response to the US eliminating the duty-free de minimis exception for items shipped to Americans. The consequences of this trade war will be felt by both countries, with tariffs imposed on each other’s products.

FAQs

Q: What is the duty-free de minimis exception?

A: The duty-free de minimis exception is a rule that allows international postal goods valued at or under US$800 to enter the country from China and Hong Kong without paying duties.

Q: What are the consequences of the trade war?

A: The consequences of the trade war include tariffs imposed on each other’s products, suspension of acceptance of items shipped by sea, and increased fees for senders.

Q: How can I stay up-to-date with the latest news on the trade war?

A: You can sign up for breaking news alerts delivered directly to you when they happen, and follow reputable news sources for the latest updates.

&copy 2025 Global News, a division of Corus Entertainment Inc.