USPS Halts Parcel Shipments from China and Hong Kong Amid Trade Tensions
The United States Postal Service (USPS) has announced an immediate suspension of parcel shipments from mainland China and Hong Kong until further notice. While letters will continue to be accepted, USPS has not provided a specific reason for the decision.
This move coincides with the implementation of new trade rules that close a long-standing loophole, which previously allowed small packages valued at $800 (£641) or less to enter the U.S. tax-free. The de minimis tax exemption had been widely utilized by Chinese e-commerce giants like Shein and Temu to sell directly to millions of American consumers without incurring import fees.
Former U.S. President Donald Trump initially proposed the policy changes and recently extended tariffs to cover all Chinese imports—including fashion, electronics, and toys—as part of a broader trade crackdown. However, discussions on modifying the de minimis threshold were already underway under President Joe Biden’s administration.
China’s Response: New Tariffs on U.S. Imports
In retaliation, China has announced tariffs on select American goods, set to take effect on February 10. These include:
- 15% tariffs on coal and liquefied natural gas (LNG)
- 10% tariffs on crude oil, agricultural machinery, and large-engine vehicles
Nick Stowe, CEO of Monsoon & Accessorize, voiced support for the U.S. trade policy shift, stating that Chinese retailers have been able to “undercut” competitors in the U.K., Europe, and the U.S. by avoiding customs duties.
Crackdown on E-Commerce Imports
The impact of Trump’s latest tariff expansion is particularly pronounced for direct-to-consumer shipments from China, according to trade expert Deborah Elms. A 2023 report by the U.S. Congress highlighted that nearly half of all parcels entering the U.S. under the de minimis rule originated from China. U.S. officials have also raised concerns that the sheer volume of these packages makes it harder to screen for counterfeit or illegal goods.
As tensions escalate, Trump is expected to engage in direct talks with Chinese President Xi Jinping in the coming days. Meanwhile, USPS has yet to provide further details on its decision to halt parcel services from China and Hong Kong.
