The United States Postal Service (USPS) has announced an immediate suspension of parcel deliveries from mainland China and Hong Kong, a move that is expected to have significant implications for cross-border e-commerce and trade. According to a statement on the USPS website, the restriction does not apply to letters, but packages will no longer be accepted until further notice.
While USPS did not explicitly state the reason for the decision, the timing aligns closely with recent policy changes implemented by former US President Donald Trump. Earlier this year, Trump imposed an additional 10% tariff on all goods imported from China and revoked the de minimis tax exemption, which previously allowed goods valued at $800 or less to enter the US without incurring duties or taxes.
The de minimis rule had been a key facilitator of direct-to-consumer e-commerce shipments from Chinese retailers such as Shein and Temu, enabling them to sell products at competitive prices while avoiding substantial import costs. However, this exemption came under increasing scrutiny from US officials, who argued that it made it challenging to screen for counterfeit products, illicit goods, and potential security risks.
Trade expert Deborah Elms highlighted the impact of the recent tariff adjustments, stating, “Trump’s tariff changes are especially sharp if goods were previously shipped via e-commerce directly from China to the US.” This decision affects a significant volume of trade, as nearly half of all parcels entering the US under the de minimis exemption were shipped from China, according to a 2023 report by the US Congressional committee on China.
China has responded with its own set of tariffs on US goods, set to take effect on February 10. The new Chinese tariffs include a 15% levy on coal and liquefied natural gas (LNG) and a 10% tariff on crude oil, agricultural machinery, and large-engine vehicles. These measures are expected to escalate trade tensions further, potentially leading to broader economic repercussions.
The sudden halt in USPS parcel acceptance from China and Hong Kong could disrupt small businesses and consumers who rely on affordable shipping for their purchases. Many e-commerce platforms and retailers will need to seek alternative shipping methods, which may result in increased costs and longer delivery times.
As diplomatic and trade negotiations between the US and China continue, former President Trump is expected to engage in discussions with Chinese President Xi Jinping in the coming days. The outcome of these talks could determine whether USPS resumes parcel services or if further trade barriers are implemented.
The BBC has reached out to USPS for additional details regarding the suspension but has yet to receive a response.
