Hong Kong Post has announced the suspension of shipments to the United States containing goods, the postal service reported on Wednesday.
Acceptance of items containing goods to the United States by airmail will be suspended on April 27. Items shipped to the US by sea have been suspended since April 16.
Items that were processed by the Post before the restrictions were imposed are also affected. Hong Kong Post said it will contact customers whose items will no longer be able to reach the US and will arrange refunds starting April 22. Shipments that do not contain goods will be sent to the US without restrictions as before.
Earlier, US President Donald Trump signed an executive order to increase tariffs on goods worth $800 or less sent from both mainland China and Hong Kong. Trump claimed that sellers were sending goods this way to avoid import taxes and customs inspections.
These goods were originally scheduled to be subject to 30% tariffs starting May 2, but Trump raised the tariffs to 120% with his executive order.
Hong Kong, which is a special administrative region of the People’s Republic of China, is known as a free and open international trade port, which charges minimal import tariffs and does not charge sales tax.
Special trade status cancelled
Hong Kong previously had special trade status with the US, which allowed for lower tariffs on goods from Hong Kong and customs inspections different from those to which goods from mainland China are subjected.
Trump revoked Hong Kong’s special trade status in 2020 during his first term after expressing concerns about restrictions on the city’s freedom of speech and autonomy due to the National Security Protection Act passed by the Chinese parliament.
The law provides for the establishment of a National Security Committee in Hong Kong, reporting to the Chinese authorities, and introduces a maximum penalty of life imprisonment for those whose actions are aimed at undermining the government.