The United States Postal Service (USPS) has temporarily halted inbound packages from China and Hong Kong due to new tariffs and import regulations. This move aims to address a loophole that allowed duty-free imports below $800, but is expected to cause delays and disruptions for shipments worldwide.
The United States Postal Service ( USPS ) announced on Tuesday a temporary suspension of inbound packages from China and Hong Kong . This move is expected to cause significant delays and potential disruptions for packages originating from other destinations as well. The suspension follows President Trump's executive order imposing a 10 percent tariff on Chinese goods.
This order also closed a loophole known as the de minimis exception, which previously allowed packages valued under $800 to enter the US duty-free. This loophole has been widely exploited by e-commerce giants like Shein and Temu, enabling them to offer goods to US buyers at incredibly low prices. Major players like Amazon, along with merchants on platforms like Etsy and eBay, also utilized this exemption. While the restriction is temporary, a definitive end date remains unannounced. It's important to note that the suspension only applies to packages and parcels, with letters and envelopes continuing to be shipped as usual. Furthermore, the restriction is specific to the official postal services of China and Hong Kong, not private courier and shipping services. Neither UPS nor FedEx has implemented any restrictions, but they are undoubtedly facing challenges in complying with the new requirements. USPS and other carriers are grappling with the immense task of inspecting the substantial volume of shipments from China that are now subject to duties and import taxes. This surge in inspections is almost guaranteed to lead to delays and complications for packages from all sources. The suspension may even indirectly impact parcels shipped by other couriers, as USPS frequently acts as the last-mile delivery service for private shipping companies. Over 1.3 billion parcels entered the US through the de minimis exemption in 2024, according to US Customs and Border Protection, a figure that has skyrocketed by more than 600 percent in the past decade. While the de minimis exemption hasn't been completely eliminated, shipments from China are no longer eligible for it. Beyond facilitating low-priced offerings from companies like Shein and Temu, de minimis shipments have raised safety concerns, making it easier for subpar products to reach US consumers. In severe cases, some e-bike and battery manufacturers have utilized de minimis to circumvent safety regulations and evade product inspections. This has contributed to hundreds of fires caused by defective e-bike batteries in New York City alone. China has already retaliated against Trump's tariffs with levies on fuel and large vehicles shipped from the US, along with restrictions on exports of certain rare minerals essential for some technology manufacturing. Additionally, the country has initiated antitrust proceedings against Google and Nvidia, with investigations into Intel and Apple reportedly underway.
USPS China Hong Kong Trade War Tariffs De Minimis Exemption Package Imports Delays E-Commerce Safety Regulations
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