Maryland finance expert weighs in after Hong Kong Post suspends shipping of non-airmail packages to U.S.
end the 'de minimis' exemption
next month.
The exemption allows shipments under $800 to go tax-free.
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 the would come through FedEx, DHL or a private third party carrier. He said items will come quicker but with a higher price tag and gave an example.
"A one-pound package would've cost about $16.50 US 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 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 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 US is unreasonable, bullying and imposing tariffs abusively. Hongkong Post will definitely not collect so-called tariffs on behalf of the US."
Hongkong Post will accept air mail packages until April 27.
Officials say 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."
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