USPS Suspends Incoming Parcels
The United States Postal Service (USPS) has announced the suspension of incoming international parcel shipments from China and Hong Kong, a decision that could disrupt the operations of major e-commerce companies such as Shein and Temu. The US Postal Service announced on Tuesday, stating that while parcel shipments would be halted until further notice, letter mail services would remain unaffected. The agency did not provide specific reasons for the suspension and declined to offer further details when approached by media outlets.
The decision comes amid heightened trade tensions between the United States and China, with multiple policy changes affecting cross-border commerce. While US Postal Service has not explicitly linked the suspension to recent government actions, the move coincides with major shifts in US trade policy. Other international logistics companies, including DHL and FedEx, have yet to comment on whether they will follow suit with similar restrictions.
New Trade Policies Impacting E-Commerce Giants
The suspension of parcel shipments follows US President Donald Trump’s executive order terminating the long-standing “de minimis” exemption. This exemption had allowed goods valued at less than $800 to enter the United States without being subject to duties or inspections, benefiting e-commerce platforms like Shein and Temu, which heavily rely on low-cost, duty-free imports. The policy change is expected to significantly impact these companies, whose business models depend on the ability to ship inexpensive products directly to American consumers without incurring additional costs.
Additionally, a 10% tariff on a wide range of Chinese imports to the US took effect on Tuesday, further complicating trade between the two economic powerhouses. The termination of the de minimis exemption is expected to disproportionately impact Chinese shipments, with nearly half of all packages benefiting from the exemption originating from China. According to a June 2023 report by a US congressional committee, these low-cost shipments accounted for a significant portion of e-commerce transactions in the United States.
China Responds with Economic Retaliation
In response to the new trade measures imposed by the US government, Beijing has announced a series of retaliatory economic actions. On Tuesday, China introduced tariffs targeting various American goods, including a 15% tax on certain types of coal and liquefied natural gas, along with a 10% tariff on crude oil, agricultural machinery, large-displacement cars, and pickup trucks. These tariffs are set to take effect on February 10.
Additionally, China has implemented export controls on over two dozen metal products and related technologies and has added two American companies, biotech firm Illumina and fashion retailer PVH Group, to its unreliable entities list. Meanwhile, former President Trump has downplayed the urgency of direct negotiations with Chinese President Xi Jinping, despite suggesting earlier that a conversation between the two leaders could happen soon.
While it remains unclear whether the US Postal Service parcel suspension is directly tied to the recent executive order, experts suggest that stricter trade regulations could lead to delays in international shipments as customs authorities increase scrutiny of imported goods. Although US Customs and Border Protection has long had the authority to inspect incoming packages, the enforcement of these regulations may now become more stringent, potentially slowing down international trade further.
