Maryland finance expert weighs in after Hong Kong Post suspends shipping of non-airmail packages to U.S.
A Hong Kong postal service will stop packages headed to the U.S. after the White House announced it would end the 'de minimis' exemption next month.
The exemption allows shipments under $800 to go tax-free.
U.S. consumer impact
On Wednesday, the postal service, Hongkong Post, suspended non-airmail packages.
Loyola University Maryland Executive in Residence of Finance Jason Cherubini said items coming from Chinese factories will no longer be shipped through Hongkong Post.
"You'll still be able to get it through Hong Kong, just shipped another way," he said.
Cherubini said packages would come through FedEx, DHL or a private third-party carrier. He said items will come quicker but with a higher price tag.
"A one-pound package would've cost about $16.50 U.S. through the Hongkong Post and take 7-14 days," he said. "To do the FedEx, which would take 1 to 2 days, would cost you about $54."
Cherubini added that items from companies like Shein and Temu could come from U.S. distribution centers.
"Shein and Temu have set up distribution centers in the United States as well as in other countries," Cherubini said.
Cherubini called this move a double-edged sword for U.S. consumers.
"On the bad end, you're not able to get items as cheaply out of China, out of countries affected by the tariff," Cherubini said. "But it is going to open up competition in the United States."
A FedEx spokesperson said in a statement, "We are business as usual between the U.S. and Hong Kong. No interruptions to report."
Hong Kong officials wrote in a statement, "The U.S. is unreasonable, bullying and imposing tariffs abusively. Hongkong Post will definitely not collect so-called tariffs on behalf of the U.S."
Hongkong Post will accept air mail packages until April 27.
Officials said the postal service will continue to accept mail that only contains documents.
"For sending items to the US, the public in Hong Kong should be prepared to pay exorbitant and unreasonable fees due to the US's unreasonable and bullying acts," said Hongkong Post in a statement."
