US customers and Hong Kong e-commerce are anticipated to suffer from DHL’s service halt.
DHL has suspended US-bound business-to-consumer shipments worth more than US$800 because of Trump tariffs
Hong Kong e-commerce businesses and American consumers are expected to bear the brunt of DHL Express’ temporary suspension of business-to-consumer shipments worth more than US$800 to individuals in the US, industry representatives have predicted.
But they expected the pause would be temporary as US customs worked to clear a backlog of packages after the Trump administration imposed additional tariffs on Chinese goods.
The global courier said on Saturday the suspension would remain in place “until further notice” and cited US President Donald Trump’s decision to end the “de minimis” tariff exemption for Chinese products worth US$800 or less, starting on May 2.
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The tariff on small parcels sent to the US from China will be further raised to 120 per cent from 90 per cent.
Commerce sector lawmaker Jeffrey Lam Kin-fung told the Post he believed e-commerce businesses would be hit hardest by the halt as they mostly shipped directly to customers, while American consumers would need to bear higher prices for imported goods.
“For example, those starting university and looking to shop online for back-to-school items will be affected and have to find alternative platforms,” he said. “This also affects Americans in Hong Kong who want to make purchases to send back home.”
Lam said he believed the temporary suspension was imposed because DHL was waiting for a backlog of packages to clear US customs.
Kennedy Wong Ying-ho, honorary president of the Hong Kong Chinese Importers’ and Exporters’ Association, said the move was “expected” because of the “complicated” situation with tariffs on exports to America.
“There are hundreds of thousands of packages from mainland China and Hong Kong entering the US,” he said. “US customs might lack the facilities and manpower to handle the volume, resulting in chaos.”
Wong agreed that cross-border e-commerce businesses on the mainland and in Hong Kong would be affected the most by the suspension. Local logistics companies might also feel the effects as the city was a hub for sending mainland goods to the US, he added.
“In the meantime, the Chinese market might face involution as there is increased inventory which they cannot export, so they will try to shift their exports to their domestic customers,” he said.
Wong said local businesses had been diversifying their base of trading partners to Southeast Asian countries and the European Union to offset the effects of the tariff hike.
Chinese-backed online retailers Shein and Temu have already notified American consumers they will raise prices starting on April 25 “because of recent changes in global trade rules and tariffs”. The two platforms ship small parcels directly from China to keep costs down.
DHL Express said business-to-business shipments to US companies with a declarable value above US$800 would not be suspended, although those may also face delays.
Hongkong Post announced on Wednesday last week that it was immediately halting delivery of parcels bound for the US via land and sea, with suspension of airmail services for goods to follow on April 27.
