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Saturday, Feb 08, 2025

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US Postal Service Halts Incoming Packages from China Due to New Tariffs

The US Postal Service has suspended parcel shipments from China and Hong Kong following President Trump's choice to eliminate a tariff exemption, impacting businesses such as Shein and Temu.
The US Postal Service has put a temporary halt on inbound parcel deliveries from China and Hong Kong after President Donald Trump opted to terminate a trade provision that permitted low-value items from China to enter the US without duties.

This action aligns with the implementation of an additional 10% tariff on Chinese imports, which commenced on Tuesday.

Beijing criticized the measure, labeling it as 'unreasonable suppression' and urged Washington to refrain from politicizing trade.

The suspension impacts companies such as Shein and Temu, which depended on the de minimis exemption to send products to the US. While the USPS confirmed that letter mail would be unaffected, it recognized the difficulties in handling the volume of parcels under the new tax regulations.

Other carriers, including FedEx, are still processing shipments, but businesses are encouraged to establish US distribution centers.

The suspension comes amid worries regarding the trafficking of fentanyl, with the US alleging that Chinese suppliers have exploited the duty-free provision to export materials for the drug.

This interruption has caused uncertainty for both businesses and consumers regarding delivery schedules, particularly for those reliant on e-commerce platforms.

Despite the increased tariffs, experts anticipate that consumer demand will remain robust, although delays could considerably affect businesses.
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