US Postal Service Suspends Shipments from China Amid Tariff Dispute

The United States Postal Service (USPS) has suspended incoming packages from China and Hong Kong, citing the need to comply with new tariff regulations. The move is a significant development in the ongoing trade tensions between the US and China.

Suspension Targets Parcels, Not Letters or Flats

According to reports, the suspension specifically targets parcels, while letters and “flats” from China and Hong Kong will continue to be accepted. This distinction is important, as it suggests that the USPS is taking a targeted approach to complying with the new tariff regulations.

Tariff Dispute Behind the Suspension

The suspension is reportedly tied to President Trump’s decision to close the “de minimis” loophole, which allowed importers and US shoppers to avoid paying tariffs on packages worth less than $800. The loophole’s closure means that an additional 10% tariff will be imposed on Chinese goods.

Impact on E-commerce Companies

The suspension is expected to impact e-commerce companies like Shein and Temu, which have relied heavily on the de minimis exemption to ship low-value packages duty-free to the US. These companies may need to adjust their shipping strategies and potentially absorb the additional tariff costs.

Expert Analysis

Experts believe that this move is unlikely to dramatically impact shipment volumes, as e-commerce demand remains high. However, it may lead to increased costs for consumers and businesses that rely on international shipping.

Update: USPS Continues to Accept Mail and Packages from China

In a surprising development, the USPS has announced that it will continue to accept all international inbound mail and packages from China and Hong Kong Posts, effective February 5, 2025. This seems to contradict the earlier report of suspension, but it’s possible that the suspension only applies to specific types of packages or shipments.

Conclusion

The USPS suspension of shipments from China is a significant development in the ongoing trade tensions between the US and China. While the suspension may impact e-commerce companies and consumers, experts believe that it is unlikely to dramatically impact shipment volumes. The situation remains fluid, and further updates are expected in the coming days.