USPS Halts Shipments Amid New Tariffs
The United States Postal Service (USPS) has announced a temporary suspension of all inbound packages from China and Hong Kong, citing an indefinite timeline for the decision. This move follows the implementation of new U.S. trade policies that impose a 10% tariff on all Chinese imports and eliminate the “de minimis” exemption, which previously allowed small-value packages under $800 to enter duty-free. While standard letters and large envelopes from China and Hong Kong remain unaffected, the suspension is expected to significantly impact e-commerce giants such as Shein, Temu, and Amazon Haul, which depend on low-cost shipping from the region.
Impact on E-Commerce Platforms
The USPS Suspends inbound packages from China and Hong Kong without explicitly stating the reason, but experts suggest it is likely a response to recent changes in trade regulations. The suspension will allow USPS to develop new procedures for processing and applying tariffs to previously duty-exempt packages. The move is a major setback for platforms like Shein and Temu, known for offering low-priced products sourced directly from Chinese manufacturers. These companies relied heavily on the now-removed “de minimis” exemption to maintain competitive pricing and streamline shipping processes.
The scale of the impact is substantial. According to recent reports from U.S. Customs and Border Protection (CBP), 1.36 billion “de minimis” shipments entered the U.S. in Fiscal Year 2024—nearly ten times the 139 million recorded in 2015. While CBP did not specify the exact percentage of shipments from China, a study commissioned by the House Select Committee on the Chinese Communist Party found that nearly half of these duty-free packages originated from China. Notably, Shein and Temu accounted for approximately 30% of these shipments, highlighting their heavy reliance on the exemption.
Future Uncertainty for Cross-Border Trade
Despite the USPS Suspends decision, the postal service has clarified that large envelopes—referred to as “flats”—are exempt from the new restrictions. However, it remains uncertain whether major e-commerce platforms can effectively utilize this category for shipping their products. The ongoing trade tensions and regulatory shifts suggest further disruptions could follow, forcing Chinese-founded e-commerce platforms to rethink their logistics and pricing strategies.
With the Biden administration emphasizing fair trade practices and supporting domestic businesses, the USPS Suspends decision is likely part of broader efforts to curb what officials describe as unfair advantages enjoyed by overseas e-commerce firms. As USPS works to adapt to the new trade landscape, American consumers who rely on low-cost goods from platforms like Shein and Temu may face delays, price increases, or limited product availability in the coming months.
