The United States Postal Service (USPS) has announced a temporary suspension on accepting parcels from China and Hong Kong, a decision that may leave both retailers and consumers at a loss.
As of Tuesday, February 4, USPS confirmed that it will halt the acceptance of international packages from these regions ‘until further notice.’ However, the delivery of letters and large envelopes (‘flats’) from China and Hong Kong will continue as usual.
This suspension means consumers expecting packages from companies such as Amazon, Shein, Temu, or AliExpress might experience delays.
USPS has not provided details on the expected duration of this suspension or the specific reasons behind this action.
The decision aligns with a new measure by President Donald Trump, which closed the ‘de minimis’ tax exemption loophole.
This tax rule allowed for small packages valued at $800 or less to be shipped to the US without any fees, benefiting budget retailers like Shein and Temu.
The ‘de minimis’ exemption has been under scrutiny for some time, with US officials citing potential security risks.
During a trade announcement last weekend, Trump also announced an additional 10 percent tariff on all goods imported from China and Hong Kong, extending the tariff to include fashion items and toys.
These changes were already being initiated under the administration before Trump’s presidency.
Social media users have shared their reactions, with some predicting challenges for companies like Shein and Temu and others commenting on the heavy reliance on products from China.
It’s not just fashion retailers that will be affected; Amazon, the largest retailer globally, will also face challenges due to USPS’s temporary halt.
More than 70 percent of Amazon’s products are sourced from China, according to a Jungle Scout survey shared by Statista.
This halt by USPS, coupled with Trump’s tariff, could lead to significant disruptions.
However, Amazon has been expanding its own delivery services through Amazon Logistics, which accounted for 27.3 percent of all US shipments in 2023, according to Capital One Shopping Research.
Despite this, Amazon continues to rely on USPS for about nine percent of its deliveries as of 2024, according to market research from ShipMatrix.
In response to Trump’s new tariff, Chinese officials have criticized the move as ‘unreasonable suppression.’
China plans to impose its own tariffs on US imports, including a 15 percent levy on coal and liquefied natural gas and a 10 percent tariff on crude oil and large-engine cars.
A USPS spokesperson informed UNILAD: “Effective February 5, 2025, the Postal Service will continue accepting all international inbound mail and packages from China and Hong Kong Posts.
“USPS and Customs and Border Protection are collaborating on a collection mechanism for the new tariffs on shipments from China to minimize delivery disruptions.
“The Postal Service provides updates to its international customers through Service Alerts available here.”