U.S. Postal Service Halts Acceptance of Packages from China

The United States Postal Service (USPS) has announced an immediate halt to the acceptance and delivery of packages from China and Hong Kong. This decision, communicated on Tuesday, has left many expecting shipments from these regions in uncertainty.

While the USPS did not provide a specific reason for this abrupt change, industry observers speculate that it may be linked to the recent imposition of additional tariffs. These tariffs include a 10% levy on goods imported from China, which has eliminated a general exemption for packages valued under $800.

In recent years, this exemption, known as the de-minimis threshold, has significantly benefited Chinese e-commerce platforms, particularly Shein and Temu. These companies have been able to send numerous parcels to the U.S. without incurring customs duties. According to reports, Shein and Temu have been responsible for approximately 30% of all packages arriving in the U.S., with nearly all of these parcels originating from China. The USPS is now faced with determining how to handle the new tariffs and their implications on the influx of goods.

Former President Donald Trump recently announced a series of tariffs on imports, including a 25% tax on goods from Canada and Mexico, alongside the 10% tax on Chinese products. Notably, while agreements were reached with U.S. neighbors, the tariff measures affecting China took effect immediately. Reports from logistics companies indicate that some freight trucks carrying goods from China were turned away at the U.S. border, while others were allowed entry after removing Chinese shipments.

Market analysts believe that despite these new tariffs, the pricing structure of products from Shein and Temu may still keep them appealing to consumers, as they would likely remain competitively priced.

This development raises questions about the future of cross-border e-commerce and the strategies that companies like Shein and Temu will employ to navigate these regulatory changes. The next steps for the USPS and the affected online retailers will be crucial in determining the impact on shipping dynamics between the U.S. and China.