The U.S. Postal Service has temporarily suspended all inbound packages from China and Hong Kong Posts due to recent tariffs imposed by President Trump. The suspension affects packages, but not letters or large envelopes sent from China and Hong Kong. This move eliminates the “de minimis” provision which allowed duty-free shipments into the U.S. for packages worth less than $800, impacting Chinese e-commerce firms who rely on this loophole. The U.S. processed over 1.3 billion de minimis shipments in 2024, with firms like Shein and Temu accounting for a significant portion of these shipments. The suspension could result in increased costs for sellers and higher prices for U.S. consumers. Lawmakers argue that de minimis imports give Chinese companies an unfair advantage and allow illicit drugs like fentanyl to enter the U.S. through the mail. Despite this suspension, some Chinese e-commerce platforms have opened distribution centers in the U.S. to store goods and continue operations. Overall, the move could have significant implications for cross-border e-commerce companies that rely on the USPS for last-mile deliveries.
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