Hongkong Post says it has suspended mail services to 'bullying' US

HONG KONG (Reuters) -Hongkong Post said on Wednesday it had suspended mail services for goods sent by sea to the United States, accusing the U.S. of "bullying" after Washington cancelled tariff-free trade provisions for packages from China and Hong Kong.

A trade war between the world's two largest economies is intensifying, with President Donald Trump imposing additional tariffs totalling 145% on China and Hong Kong, while China has responded with additional import taxes of 125% on the U.S.

Hongkong Post's statement said it would also suspend air mail containing goods destined for the U.S. from April 27.

On May 2, the U.S. is also set to halt its "de minimis" provision for packages from China and Hong Kong under which those valued at under $800 and sent direct to consumer enter the country tariff-free.

From the beginning of May, those packages will be subject to a 90% tariff, or flat fee of $75.

According to U.S. Customs data, de minimis imports into the U.S. have grown from $9.2 billion in 2016 to $54.5 billion in 2023, with Chinese packages accounting for nearly 60% of all shipments.

Trump has said that packages from China and Hong Kong are being targeted because fentanyl and its precursor ingredients have been shipped to the United States under the de minimis provision.

When sending items to the U.S., Hong Kong people "should be prepared to pay exorbitant and unreasonable fees due to the U.S.' unreasonable and bullying acts", Hongkong Post said.

Other postal items containing only documents, without goods, would not be affected by Hongkong Post's halt in shipments.

"Hongkong Post will definitely not collect any so-called tariffs on behalf of the U.S.," the statement said.

In response to Reuters questions about its plans, DHL said it would continue to process shipments from Hong Kong to the United States "in accordance with the applicable customs rules and regulations" and would "work with our customers to help them understand and adapt to the changes that are planned for May 2."

Hong Kong, a special administrative region of China, has been subjected to the same tariffs as China, according to a U.S. government notice.

The former British colony has long been known as a free and open trading hub. But China's imposition on Hong Kong of a sweeping national security law in 2020 drew criticism from the United States and led it to end the financial hub's special status under U.S. law.

(Reporting by Farah Master and Jessie Pang in Hong Kong; Editing by Himani Sarkar, Stephen Coates and Mark Heinrich)