New York: The US Postal Service (USPS) has revealed a temporary suspension of parcel shipments from mainland China and Hong Kong, while letters will continue to be accepted.
The suspension is set to remain “until further notice,” with no specific reason provided by USPS. This move follows US President Donald Trump’s decision to impose a 10% tariff on all goods imported from China, eliminating the “de minimis” tax exemption that previously allowed goods valued at $800 or less to enter the US duty-free.
The de minimis loophole has come under scrutiny in recent years, particularly as Chinese e-commerce giants like Shein and Temu have increasingly used it to send parcels to millions of US customers.
In retaliation, China announced tariffs on US imports, effective from 10 February, including a 15% levy on coal and LNG products, and a 10% tariff on crude oil, agricultural machinery, and large-engine cars.
Trump is expected to hold talks with Chinese President Xi Jinping in the coming days. Trade expert Deborah Elms pointed out that the new tariff policies are particularly impactful on goods shipped via e-commerce directly from China to the US.
According to a 2023 report from the US Congressional committee on China, nearly half of all parcels entering the US under the de minimis exemption were sent from China. US officials have expressed concerns over the increasing difficulty in screening these parcels for potentially illegal goods.
The swift implementation of President Trump’s trade orders left postal and customs officials with limited time to prepare for the increased scrutiny of parcels.
On January 22, President Trump announced tariffs on Canada and Mexico to take effect on February 1, and added China to the list on January 23. Trump signed the executive orders on February 1, with the tariffs set to take effect just three days later.
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