The U.S. Postal Service has temporarily suspended all inbound packages from China and Hong Kong Posts until further notice, following President Trump signing executive orders imposing tariffs on several countries. The suspension does not apply to letters and large envelopes. The change eliminates the de minimis loophole, affecting Chinese e-commerce firms that rely on duty-free shipments under $800. China Post and Hong Kong Post are government-operated services, but it is unclear if the suspension applies to packages shipped via private carriers.
The de minimis provision has been essential for Chinese e-commerce companies like Shein and PDD Holdings’ Temu, which send a large percentage of packages to the U.S. USPS is a popular last-mile delivery option for cross-border e-commerce companies, making up about 31% of deliveries. The suspension could raise costs for sellers and increase prices for consumers.
Lawmakers and trade officials have argued that de minimis imports give Chinese companies an unfair advantage and allow illicit drugs to enter the U.S. Trump’s move to curb de minimis shipments could impact the growth of Chinese e-commerce platforms in the U.S. However, companies like Temu and Shein have begun opening distribution centers in the U.S. to store goods locally, reducing their reliance on the de minimis provision.
Overall, the suspension of inbound packages from China and Hong Kong is expected to have significant implications for the e-commerce industry and could lead to increased costs and changes in shipping strategies for Chinese companies.
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