USPS Reverses Decision to Suspend Inbound Packages from China and Hong Kong

2025-02-28

The U.S. Postal Service (USPS) has reversed its decision to suspend inbound packages from China and Hong Kong, just one day after implementing the ban. The initial suspension, announced on Tuesday, came in response to President Donald Trump’s executive order imposing a 10% tariff on Chinese goods and closing the “de minimis” trade loophole, which allowed packages valued under $800 to enter the U.S. duty-free. The reversal, announced Wednesday, did not provide a specific reason but stated that USPS would work with Customs and Border Protection to implement a collection process for the new tariffs.

The brief suspension had raised concerns about potential disruptions for e-commerce platforms like Shein and Temu, which rely heavily on low-cost shipping from China to offer affordable products to U.S. consumers. These companies, along with others like Alibaba’s AliExpress, have benefited from the de minimis exemption, which has been a key factor in their rapid growth in the U.S. market. Analysts warned that the suspension could have led to delays and higher prices for consumers.

The de minimis provision has been a contentious issue, with lawmakers and trade groups arguing that it gives Chinese companies an unfair advantage and allows illicit goods, such as fentanyl, to enter the U.S. with minimal oversight. In 2023, Chinese exports of low-value packages to the U.S. reached $66 billion, up from $5.3 billion in 2018, according to a Congressional Research Service report.

While USPS has resumed accepting packages from China and Hong Kong, the new tariffs and the closure of the de minimis loophole are expected to impact the pricing and logistics strategies of Chinese e-commerce companies. Some businesses have already begun shifting to U.S.-based warehouses to mitigate potential trade restrictions. The long-term effects of these changes on consumer prices and the broader U.S. economy remain to be seen.