Hong Kong Logistics Association Vice President Leung Ting Cheung: Tariff War Causes Order Cancellations in Hong Kong’s Logistics Industry

The U.S. policy to impose tariffs on small parcels from China and Hong Kong officially took effect today (May 2). The U.S. will levy a tax equivalent to 120% of the declared value of small parcels from China and Hong Kong or $100 per item, increasing to $200 per item after June 1. Sixteen days before the policy’s implementation, Hong Kong Post suspended its surface mail parcel service to the U.S., followed by a halt on air mail parcels containing goods on April 27. DHL has consecutively paused acceptance of parcels destined for the U.S., while international logistics giants like FedEx and UPS have begun imposing surcharges or raising shipping fees to offset the tariff burden.

Although the tariff policy has not yet fully taken effect, its chilling effect has already impacted Hong Kong’s logistics industry. In an exclusive interview with etnet, Leung Ting Cheung, Vice President of the Hong Kong Logistics Association, noted that due to the tariff war, some logistics companies are facing order cancellations.

Over 40% of Hong Kong’s E-commerce Exports Go to the U.S.

Leung pointed out that the White House’s decision to eliminate the tax exemption for small Chinese parcels has significantly affected multinational e-commerce platforms reliant on the U.S. market. He noted that approximately 40% to 50% of Temu’s (a platform under Pinduoduo) business comes from the U.S., while fast-fashion brand Shein derives 20% to 30% of its business from the U.S. market. Under the pressure of a 120% tariff, the fragility of merchants’ average profit margins of only 20% to 30% has been exposed.

According to a previous Bloomberg report, in response to the U.S. tariff impact, Shein has raised prices for U.S. goods, with some categories seeing increases as high as 377%. Temu has also doubled the prices of some products.

The impact on Hong Kong’s local e-commerce sector is equally severe. Leung cited data from the Hong Kong Trade Development Council, stating that the U.S. accounts for 42% of Hong Kong’s e-commerce trade. Additionally, according to Hong Kong Post, small parcels make up 60% to 70% of its total parcel volume.

the entire article (The original content is in Chinese):

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