The United States Postal Service (USPS) announced on Tuesday that it is temporarily suspending the acceptance of incoming international parcels from China and Hong Kong, effective immediately and until further notice.
The suspension follows the imposition of new trade measures by US President Donald Trump, but USPS has not provided an official explanation linking the two. In a statement, the USPS said that letter deliveries will not be affected by this halt, as per AFP.
The move comes just days after Trump’s executive order which eliminated the “de minimis” exemption for low-value goods, a long-standing policy that allowed parcels worth $800 or less to enter the United States without being subject to tariffs or inspections.
The de minimis rule had been used to facilitate low-cost imports, especially from Chinese-based e-commerce giants like Shein and Temu, which have seen rapid growth by capitalising on this loophole.
The decision to end the duty-free exemption is likely to impact millions of such parcels, affecting both consumers and businesses in the e-commerce space, according to the New York Times.
The suspension of parcel acceptance follows Trump’s executive order, which took effect on Tuesday and imposed a 10% tariff on all imports from China, alongside the scrapping of the de minimis rule. This order is part of the administration’s broader strategy to address trade imbalances with China and to curb the entry of illicit goods, including fentanyl.
By requiring detailed information and the payment of tariffs on these packages, the change in rules will now subject low-value parcels to the same scrutiny as higher-value imports.
While the USPS has not explicitly linked the suspension to these new regulations, experts suggest that the increase in parcel inspections could result in significant delays in shipments.
Customs and Border Protection (CBP), which manages the inspection of packages entering the country, already struggles with the sheer volume of international shipments, and the change in policy is expected to further strain resources.
FedEx and UPS, which manage many of these low-value parcels, have also expressed concerns about potential delays and supply chain disruptions due to the changes, as per the New York Times.
E-commerce companies like Shein and Temu may face challenges due to new regulations. These changes could hamper cross-border shopping, especially for American shoppers who depend on low-cost products from other countries.
Amazon could also be impacted, although it has not yet publicly commented on the situation, reported AFP.