U.S. Postal Service Temporarily Suspends International Packages from Mainland China and HKSAR
On Tuesday, the U.S. Postal Service (USPS) announced a temporary halt to the acceptance of international packages coming from the Chinese mainland and the Hong Kong Special Administrative Region (HKSAR). However, it emphasized that letters and flats would remain unaffected by this decision.
This sudden move has been described as "abrupt" by the Washington Post, and it has been connected to the recent tariff increases on Chinese goods initiated by the Trump administration.
While USPS has not immediately confirmed if this action is linked to President Donald Trump's changes regarding "de minimis" shipments from China, reports from Reuters suggest that it may well be. On Saturday, Trump signed an executive order that introduced a 10-percent tariff on various imports from China, as reported by Xinhua News Agency. This executive order has faced significant backlash both domestically and internationally.
Furthermore, Trump's order revokes a long-standing tax loophole that allowed companies to avoid paying substantial fees on imports, which predominantly come from China, according to the Washington Post. This change in policy could impact a range of businesses, from small Etsy sellers to large e-commerce giants.
During Trump's presidency, the issue of package exemptions under a value of $800 from China was frequently highlighted. Wu Xinbo, who leads the Center for American Studies at Fudan University, noted that this policy has led to a significant inflow of parcels into the U.S. through e-commerce channels, contributing to revenue losses due to the aforementioned loophole.
Wu explained, "With online shopping becoming commonplace, many consumers in the U.S. purchase smaller goods from China that are often affordable and of good quality. If this supply is suddenly disrupted, it will create challenges for American consumers who rely on these products for their everyday needs."
The new regulations are also expected to impact U.S.-based e-commerce platforms such as Shein and Temu, which have heavily relied on the previous exemptions to grow their businesses. The relaxed import restrictions and tax exemptions provided an avenue for over a billion packages filled with low-cost items—ranging from clothing to home goods—to enter the U.S. market each year.
As the USPS prepares to enact this suspension, many are left wondering about the broader implications for consumers who have increasingly turned to online shopping for affordable products from China.
Postal, Tariffs, E-commerce