On February 4th, the US government announced a 10% tariff increase on all imports from China. For the first time, the US explicitly designated Hong Kong as part of China, requiring all Hong Kong-made, imported, and re-exported goods to be subject to the same tariffs. This decision not only formally denies Hong Kong's status as an "independent customs territory," but also further undermines Hong Kong's competitiveness as an international entrepot. The impact of this policy will be far-reaching and severe, bringing unbearable impacts to Hong Kong in terms of trade, economy, international reputation, and political influence.
Hong Kong's status as a trade hub is at risk
Although the USPS has resumed accepting parcels from China and Hong Kong, and US President Trump signed an executive order last Friday (7th) delaying tariffs on "de minimis" packages from China until the Ministry of Commerce confirms the procedures and systems are in place for handling packages and collecting tariffs, Hong Kong Post continues to suspend accepting parcels destined for the US. The Hong Kong government has also issued another statement, blaming the USPS for its "sudden suspension" and subsequent "sudden acceptance." Industry insiders point out that this is a normal practice for the USPS, not a sudden change of policy. It is believed that Hong Kong's continued suspension is not a "retaliatory measure," but rather a response to the need to deal with the package backlog and clarify tax collection arrangements.
Hong Kong, thanks to its status as an independent customs territory, has long served as a crucial trade hub between China and the world. In the past, Hong Kong goods enjoyed different tariff treatment from mainland China, making it a crucial channel for businesses to circumvent the impact of tariffs in the US-China trade war. However, with the US explicitly treating Hong Kong goods the same as Chinese goods, this advantage will no longer exist.
