Hong Kong Suspends Packages to the U.S., Wading Into the Trade War

[Ryobi]

Hong Kong’s postal service will stop handling packages coming from or going to the United States, in the latest retaliatory move amid an escalating trade war between Washington and Beijing.

In a statement published Wednesday announcing the decision, the government of Hong Kong cited US President Donald Trump’s decision last week to eliminate the so-called de minimis exception for items posted from the city to the US. The exemption applied to international shipments worth $800 or less entering the US.

“The US is unreasonable, bullying and imposing tariffs abusively,” the government said in the statement. “The public in Hong Kong should be prepared to pay exorbitant and unreasonable fees due to the US’s unreasonable and bullying acts.”

The government said the postal service, Hongkong Post, will stop accepting packages transported by sea with immediate effect and stop taking airborne packages starting from April 27. Other postal items containing only documents, for example letters, will not be affected.

The retaliatory move means companies and individuals in Hong Kong will have to pay private couriers such as FedEx and DHL to deliver packages, further driving up costs for consumers on top of US levies.

A DHL spokesman told CNN that it will continue to process shipments to the US, monitor the situation and work with customers to help them keep up with latest changes.

CNN has reached out to FedEx and UPS for comment.

 

[BP_6]

Can't say I blame them. Plus as most know, China has stopped shipping of critical metals that they control 90% of the world supply on to the USA. I am actually hoping this pressure will lead to change.

 

[Ghoul]

Can't say I blame them. Plus as most know, China has stopped shipping of critical metals that they control 90% of the world supply on to the USA. I am actually hoping this pressure will lead to change.

Stricter customs enforcement and holding the shipper liable for contraband is the reason they're stopping small packs just before the enhanced standards kick in. It's a tacit admission they won't be able to stop the flow of contraband, and they don't want to be held responsible for huge fines every time something is found shipped with a falsified customs declaration.

Other logistics companies have expressed the same concern about not being willing to take on responsibility for contents of packages now that they can be face heavy penalties, unlike the previous system, where they were immune even when drugs were found.