USPS Reverses Suspension on Packages from China and Hong Kong Amid Trade Tensions
The U.S. Postal Service (USPS) temporarily suspended inbound packages from China and Hong Kong following new tariffs imposed by President Donald Trump, targeting a trade loophole known as “de minimis.” The suspension, announced on Tuesday, was reversed a day later after USPS stated it would continue accepting packages from China and Hong Kong while working with U.S. Customs and Border Protection to implement an efficient collection mechanism for the new tariffs. Letters and large envelopes were not affected by the suspension.
The de minimis provision allows goods valued at $800 or less to enter the U.S. duty-free, a policy heavily utilized by Chinese e-commerce giants Shein and Temu to offer low-cost products. The surge in de minimis shipments, which accounted for over 30% of all such packages to the U.S. in 2024, has raised concerns about unfair competition, tax evasion, and security risks, including the potential for illicit drugs like fentanyl to enter the country. Lawmakers and trade officials have criticized the loophole, arguing it undermines domestic retailers and complicates customs inspections.
China condemned the suspension as “unreasonable suppression” and retaliated with its own tariffs on U.S. goods, including coal, liquefied natural gas, and agricultural machinery. The move has heightened trade tensions between the two nations, with President Trump signaling no immediate plans for talks with Chinese President Xi Jinping. Meanwhile, U.S. retailers and trade groups have welcomed the crackdown on de minimis shipments, while e-commerce platforms like Shein and Temu may face challenges sustaining their rapid growth in the U.S. market.
USPS temporarily suspends some inbound packages from China, Hong Kong
The change comes after President Donald Trump announced new tariffs that also target a popular trade loophole, called de minimis.
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Bloomberg Asia
Bloomberg delivers business and markets news, data, analysis, and video to the world, featuring stories from Businessweek and Bloomberg News
www.bloomberg.comUSPS temporarily stops accepting inbound packages from China and Hong Kong
The US Postal Service decision, which takes effect immediately, is a potential blow to Chinese online retailers such as Shein and Temu.
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