In a move that has sent ripples through the global e-commerce landscape, the United States Postal Service (USPS) announced a temporary suspension of inbound parcels from China and Hong Kong on February 4, 2025. This decision came into effect immediately, with letters and flat mail from these regions continuing to be processed as usual.
The suspension was announced on the same day that new U.S. tariffs on Chinese goods took effect, following an executive order signed by President Donald Trump. The order imposed a 10% tariff on all imports from China and eliminated the "de minimis" exemption, which previously allowed packages valued under $800 to enter the U.S. duty-free.
Background and Impact
The "de minimis" exemption has been crucial for Chinese e-commerce platforms like Shein and Temu, which have built their business models around shipping low-cost goods directly to U.S. consumers without incurring duties. Nearly half of all packages entering the U.S. under this exemption originated from China, according to a U.S. Congressional report.
The suspension of parcel acceptance from China and Hong Kong is likely to disrupt operations for these e-commerce companies, potentially leading to delays or cancellations of orders for American shoppers. Retailers may need to adjust by increasing stock in U.S. fulfillment centers or passing new costs onto consumers.
Reversal of the Suspension
In a swift turnaround, the USPS lifted the suspension less than 24 hours later, on February 5, 2025. The reversal came as the USPS and U.S. Customs and Border Protection worked together to establish a mechanism for collecting the new tariffs, aiming to minimize disruptions to package delivery.
Hongkong Post, however, continued to suspend acceptance of packages for the U.S., criticizing the initial USPS decision and the U.S. tariffs.
Trade Tensions and Future Implications
The USPS's actions reflect the escalating trade tensions between the U.S. and China. China responded to the U.S. tariffs by imposing its own tariffs on selected U.S. imports, including crude oil and agricultural machinery.
As trade policies continue to evolve, e-commerce companies and consumers alike will need to adapt to new regulations and potential changes in shipping costs and delivery times.
Source: Josh Wingrove and Derek Wallbank, Bloomberg https://www.bloomberg.com/news/articles/2025-02-05/us-postal-service-suspends-inbound-parcels-from-china-hk