USPS Suspends Parcel Acceptance from China Following New Tariff Regulations

The US Postal Service (USPS) has announced an immediate suspension of parcel deliveries from mainland China and Hong Kong amid new tariff regulations imposed by President Donald Trump, likely impacting significant e-commerce activities.

The United States Postal Service (USPS) has declared that it will no longer accept parcels originating from mainland China and Hong Kong until further notice, although letters remain unaffected by this decision. Although the USPS did not provide a specific reason for the halt, this action follows recently implemented regulations aimed at eliminating the de minimis tax loophole that previously allowed small packages, valued at $800 or less, to enter the US without incurring taxes or fees. President Trump’s trade measures included a 10% tariff on all goods imported from China, extending to a wide array of products, including fashion and toys.

The de minimis exemption has come under increasing scrutiny, particularly as Chinese e-commerce giants like Shein and Temu have leveraged this loophole to successfully capture a significant share of the US market. These changes were set in motion prior to Trump's presidency, as President Biden had also aimed to revise the de minimis exemption. Trump’s recently announced tariffs received support from various retail leaders in the US and Europe, who argue that the loophole enabled Chinese companies to undercut domestic competitors by avoiding customs duties.

In retaliation, China has indicated it will impose tariffs on certain US imports beginning February 10, including 15% levies on coal and liquefied natural gas, along with a 10% tariff on crude oil and agricultural machinery. The expected dialogue between President Trump and Chinese President Xi Jinping may face delays, as Trump expressed he is "in no rush" to initiate talks.

Trade expert Deborah Elms highlighted the sharp nature of the trade changes, particularly for goods shipped directly via e-commerce from China. A 2023 US Congress report revealed that nearly half of all parcels entering the US through the de minimis exemption originated from China. Officials have stated that the overwhelming volume of parcels utilizing this exemption has complicated efforts to screen for potentially illegal items.

The USPS has been approached for further details regarding the rationale behind this sudden suspension. The implications of these policies could be far-reaching for both Chinese retailers and US consumers reliant on cross-border e-commerce.