File Photo: On November 10, 2021, a container ship docks outside the Victoria Harbour at the Kwai Tsing Container Terminal in Hong Kong, China. (Photo by Anthony Kwan/Getty Images)
[People News] Radio Free Asia has exclusively obtained U.S. government documents revealing that, starting Tuesday (the 4th), the United States will impose a 10% tariff on all Chinese imports. For the first time, the documents explicitly state that all goods manufactured in, imported from, or transshipped through Hong Kong will be subject to the same tariff requirements as Chinese products. A U.S. think tank scholar told Radio Free Asia that this move reflects Hong Kong’s loss of its special trade status and delivers a severe blow to its role as an international transshipment hub. “As long as a product bears the Hong Kong label, it will be regarded as equivalent to being from China,” the scholar explained, adding that China can no longer use Hong Kong as a loophole to evade U.S. sanctions.
According to the Radio Free Asia report, the U.S. has officially launched its tariff war by imposing an additional 10% duty on Chinese imports starting Tuesday (the 4th). Documents obtained exclusively from the U.S. Department of Homeland Security (DHS) and Customs and Border Protection (CBP) outline new tariff measures on China, including, for the first time, tariffs on Hong Kong.
The documents specify that, except for certain humanitarian aid supplies and personal items carried by travelers, all products originating from China and Hong Kong will be subject to the additional 10% tariff. Even goods valued under $800, which previously qualified for the U.S. “De Minimis” duty exemption, will no longer be exempt and must pay the extra 10% tariff. In effect, Hong Kong will no longer enjoy its former "independent customs territory" status. All international shipments from Hong Kong—regardless of their value—must now be declared, increasing both the export costs and administrative burdens for businesses in China and Hong Kong targeting the U.S. market.
China’s Longstanding Use of Hong Kong to Evade U.S. Tariffs Comes to an End
It is worth noting that China has long taken advantage of Hong Kong’s status as an independent customs territory and international transshipment hub to reroute goods through Hong Kong to the U.S. in order to avoid tariffs. This time, however, U.S. Customs has explicitly stated that it will strictly investigate attempts to evade tariffs through Hong Kong. According to newly issued guidelines, if supply chain documents—such as certificates of origin, purchase orders, or packing lists—confirm that a product originates from China or Hong Kong, it will be subject to the new tariffs. Additionally, if a product is primarily manufactured, assembled, or processed in China or Hong Kong, it may still be classified as a Chinese or Hong Kong product and subject to tariffs, even if it is transshipped through a third country such as Singapore, Taiwan, or South Korea. The documents do not mention Macau, which is also a Special Administrative Region.
Sunny Cheung, a researcher at the Jamestown Foundation, pointed out that this move will severely impact Hong Kong’s role as an international logistics and trade bridge between China and the West.
“The message is very clear,” said Cheung. “Hong Kong has long served as China’s main transshipment port and was previously not affected by China-related tariffs. Now that Hong Kong is explicitly included, it is evident that the U.S. is closing loopholes while also sending a much tougher message to China, exerting greater deterrence.”
Marco Rubio Recently Stated: ‘Hong Kong Companies Are No Different from Chinese Companies’
Cheung also emphasized that the U.S. government has demonstrated a highly sophisticated understanding of Hong Kong affairs. From the State Department and the Department of Defense to the Department of Homeland Security and Customs, U.S. officials are well aware that the Chinese Communist Party (CCP) has completely taken control of Hong Kong. Recently, newly appointed U.S. Secretary of State Marco Rubio, in an interview about China’s influence over the Panama Canal, explicitly stated that “Hong Kong companies are no different from Chinese companies.”
Cheung further noted that former U.S. President Donald Trump has already warned that if the CCP retaliates, tariffs could be raised even higher. In fact, the Chinese government has already issued a series of countermeasures against the U.S. Given Hong Kong’s entanglement in worsening U.S.-China relations, the extent of U.S. sanctions on Hong Kong is expected to expand further.
Cheung added: “As for how far the U.S. government will go in its measures against Hong Kong, there is still significant room for escalation. One previously mentioned possibility is targeting Hong Kong’s currency peg to the U.S. dollar. Right now, the tariffs only apply to goods made in China or Hong Kong. A more severe measure would be imposing tariffs on all goods transshipped through Hong Kong, regardless of their country of origin. That would be a nuclear-level blow to Hong Kong’s economy.”
According to Hong Kong government data, the U.S. has consistently been one of Hong Kong’s top ten trading partners. However, since 2018, Hong Kong’s exports to the U.S. have declined due to the U.S.-China trade war and deteriorating bilateral relations. Currently, Hong Kong’s total exports to the U.S. stand at approximately HKD 300 billion (around USD 38.5 billion), the majority of which consists of goods from mainland China transshipped through Hong Kong. Radio Free Asia has reached out to the Hong Kong government for comment and is awaiting a response.
A review of past policies reveals that in 2020, during Trump’s presidency, the U.S. amended the Hong Kong Policy Act in response to Hong Kong’s implementation of the National Security Law and issued Executive Order 13936 on the Normalization of Hong Kong, revoking Hong Kong’s special independent customs territory status. This order also mandated that products labeled as “Made in Hong Kong” be reclassified as “Made in China.” However, at that time, no additional tariffs were imposed on Hong Kong products. The newly announced tariff measures mark the first time that U.S. trade policy explicitly states that products from Hong Kong will be subject to the same additional tariffs as those from China, broadening the scope of economic impact.
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