British News Agency

In a statement released Wednesday announcing the decision, the Hong Kong government referred to U.S. President Donald Trump’s decision last week to remove the so-called de minimis exemption for products sent from the city to the U.S. The exemption applied to international shipments valued at $800 or less entering the U.S.

The government stated that the postal service Hongkong Post would immediately stop accepting sea-shipped packages and, starting April 27, would stop accepting air-shipped packages. Only postal items containing documents, such as letters, would be unaffected.

This retaliatory move means that businesses and individuals in Hong Kong will now have to pay private couriers like FedEx and DHL to deliver their packages, which increases costs for consumers, on top of U.S. taxes.

Earlier this month, Trump signed an executive order that raised tariffs on goods valued at $800 or less shipped from China, including Hong Kong, arguing that these goods were being used by retailers to avoid import duties and customs checks.

Initially, the exemption was expected to end, and these goods would have faced 30% tariffs starting May 2. However, Trump’s latest executive order raised the rates to 120%.

The semi-autonomous Chinese city has long been known as a free and open international trade port with no minimum import taxes or sales taxes. It previously had special trade status with the U.S., allowing goods from the city to benefit from lower tariffs and a separate customs process compared to goods from mainland China.