US Postal Service briefly suspends incoming packages from China, Hong Kong
The United States Postal Service has reversed its decision to ban inbound packages from China and Hong Kong, just one day after announcing the suspension.
The initial decision came after the US government imposed a 10% tariff on Chinese goods and eliminated a customs exception that previously allowed small-value packages to enter the country tax-free.
On Wednesday, the it would continue accepting all international mail and packages from China and Hong Kong but provided no explanation for the abrupt reversal.
In a brief statement, USPS indicated it would coordinate with Customs and Border Protection to implement a new system for collecting tariffs on Chinese imports while ensuring continued delivery services.
The sudden policy change had the potential to disrupt online shopping platforms such as Shein and Temu, which have become increasingly popular among American consumers for their low-cost clothing and household items shipped directly from China.
These companies rely on affordable international postal services and the now-revoked “de minimis” exemption, which previously allowed packages valued under $800 to bypass customs duties.
Had the ban remained in place, it would have led to significant delays in deliveries and increased costs for companies that depend on low shipping rates to sustain high-volume sales. While letters and other flat mail were not subject to the initial suspension, the impact on parcel deliveries could have been far-reaching.
The de minimis exemption’s removal was part of a broader policy shift under the latest executive order, which also introduced the 10% tariff increase on Chinese imports.
US Customs and Border Protection has estimated that over four million packages benefiting from the de minimis rule enter the US each week. By eliminating this exemption, the government aims to tighten control over imports while increasing tax revenue from Chinese shipments.
The move is expected to have ripple effects across the retail sector, particularly for companies like Shein and Temu, which together account for about 17% of the discount market for fashion, toys, and household goods in the U.S.
A recent Congressional Research Service report noted that Chinese exports of low-value packages to the U.S. skyrocketed from $5.3 billion in 2018 to $66 billion in 2023, highlighting the significance of this trade channel.
Neither Shein nor Temu provided immediate comments on the Postal Service’s policy change. However, Temu has previously stated on its website that it also utilizes private carriers like FedEx and UPS to fulfill orders, while Shein customers commonly rely on USPS and FedEx for returns.
The broader economic implications of the new tariffs remain uncertain, but analysts predict rising prices and potential supply chain delays for imported consumer goods. In 2023, the U.S. imported approximately $427 billion worth of goods from China, with consumer electronics being one of the largest categories.
Despite the Postal Service’s reversal, industry experts are closely monitoring how the new trade policies will affect shipping logistics, e-commerce businesses, and American consumers in the months ahead.
