The U.S. Postal Service has announced the suspension of incoming international parcels from China and Hong Kong, though letters will still be accepted. The reason for the suspension has not been disclosed. This move could disrupt the business models of e-commerce giants like Shein and Temu, which rely heavily on low-cost shipping from China and Hong Kong.
This development follows a recent executive order by President Donald Trump, which ended the “de minimis” exemption. This exemption previously allowed packages valued under $800 to enter the U.S. without duties or inspections. Additionally, a 10% tariff on Chinese imports took effect on Tuesday.
The change is expected to impact e-commerce platforms such as Shein and Temu, which have thrived on the ability to ship inexpensive products into the U.S. under the exemption. The termination of this exemption is particularly challenging for Chinese shipments, as nearly half of all packages under the de minimis rule originated from China.
In retaliation, Beijing has introduced economic measures, including a 15% tax on specific coal and liquefied natural gas, as well as a 10% tariff on various goods, including crude oil, agricultural machinery, and certain vehicles. These measures will take effect on February 10. China has also implemented new export controls on certain metal products and technologies and added two American companies, Illumina and PVH Group, to its “unreliable entities” list.
On Tuesday, Trump stated that he was in “no rush” to engage in talks with Chinese President Xi Jinping to ease escalating trade tensions, despite suggesting the previous day that a conversation between the two leaders could take place within the next 24 hours.
While it’s uncertain whether the suspension of the de minimis exemption is directly linked to the executive order, experts have noted that if every package must undergo inspection, the delivery of international parcels into the U.S. would be “slowed down.”
At present, U.S. Customs and Border Protection has the authority to inspect any international shipment, though it doesn’t typically open every single package in practice.