US Postal Service halts parcel shipments from China and Hong Kong

The US Postal Service announced it will temporarily suspend international parcels from China and Hong Kong after President Donald Trump this week closed a trade loophole used to ship low-value packages duty-free from China.

The Trump administration imposed a 10 percent tariff on Chinese goods on Tuesday and moved to close a “de minimis” loophole that allows importers and US customers to avoid paying tariffs on packages under $800.

The USPS stated that the change would not affect the flow of letters and “flats” from China and Hong Kong. The USPS did not immediately comment on whether this change was linked to Trump’s decision to end de minimis shipments from China and other countries.

Fast-fashion retailer Shein and online store Temu, both of which sell products ranging from toys to smartphones, have grown rapidly in the US thanks in part to the de minimis exemption.

The US Congressional China Committee noted in its June 2023 report that these two firms together accounted for more than 30 percent of all packages shipped to the US each day under the de minimis provision. According to the report, nearly half of all parcels sent under de minimis come from China.

Shein and Temu did not immediately respond to requests for comment.

Analysts said Trump’s lifting of a long-term tariff exemption that benefits China’s cross-border e-commerce giants would hurt American consumers—especially low-income earners—more than the companies themselves.