The U.S. Postal Service has announced a temporary suspension of all inbound packages from China and Hong Kong Posts until further notice. This change comes after President Donald Trump signed executive orders imposing tariffs on China, Mexico, and Canada. The orders eliminate a trade loophole known as “de minimis,” which allows duty-free shipments of packages worth less than $800 into the U.S. The U.S. processed over 1.3 billion de minimus shipments in 2024, with Chinese e-commerce firms like Shein and Temu being major users.
China Post and Hong Kong Post are government-operated postal services, but it is unclear if the suspension applies to package shipments sent via private carriers. Cross-border e-commerce companies rely on USPS for about 31% of last-mile deliveries, and the suspension may lead to increased costs for sellers and higher prices for U.S. consumers.
Lawmakers and trade officials have argued that de minimis imports give Chinese companies an unfair advantage and could allow illicit drugs like fentanyl to enter the U.S. if not adequately inspected. Some Chinese e-commerce platforms, like Temu and Shein, have opened distribution centers in the U.S. to store goods and bypass de minimis requirements. The trend of opening U.S. warehouses for domestic distribution has grown as major e-commerce companies seek to navigate trade restrictions. However, it is uncertain if these companies can sustain growth in the U.S. if subject to tariffs on their shipments.
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