USPS Halts Parcel Deliveries From China and Hong Kong Amid Escalating Trade Tensions

USPS suspends deliveries from China and Hong Kong
Photo by Tareq Ismail on Unsplash

In a significant move reflecting the intensifying trade dispute between the United States and China, the U.S. Postal Service (USPS) has announced an immediate suspension of incoming parcel deliveries from China and Hong Kong. This suspension, effective until further notice, excludes letters and flat mail, which will continue to be processed as usual.

The decision follows a series of recent policy changes by the U.S. government aimed at addressing trade imbalances and concerns over the influx of low-cost goods from China. Notably, the termination of the “de minimis” exemption, which previously allowed duty-free entry of packages valued below $800, has been a critical factor, as noted by the BBC. This exemption had previously facilitated a surge in small parcels from Chinese e-commerce giants like Shein and Temu into the U.S. market.

The USPS suspension of China-bound packages is expected to impact Chinese e-commerce firms like Shein and Temu, with Shein being hit harder. Jacob Cooke, CEO of WPIC Marketing + Technologies, explained that Shein depends more on USPS for direct-to-consumer shipping from China. “Without this channel, it will have to rely more on private carriers,” Cooke said, “That will increase logistics costs, which, along with the recent scrapping of the de minimis exemption for most products from China, could erode its price advantage,” as reported by The Associated Press.

Industry analysts suggest that consumers should prepare for potential delays and increased costs when ordering products shipped from China and Hong Kong. The sudden change is expected to complicate logistics and prompt private carriers to reconsider handling packages from these regions.

This development is part of a broader shift in U.S. policy to address trade issues with China. The recent imposition of a 10% tariff on Chinese goods, coupled with the elimination of the de minimis exemption, underscores the administration’s commitment to recalibrating trade relations. In response, China has enacted retaliatory measures, including tariffs on U.S. energy, vehicles, and equipment, and has initiated investigations into American companies operating within its borders.

Donald Trump has said he’s in “no rush” to speak with Chinese President Xi Jinping, despite earlier expectations of talks following the announcement of tit-for-tat tariffs. While White House press secretary Karoline Leavitt had indicated a call was scheduled, she later offered no updates on timing. “He is not going to allow China to continue to source and distribute deadly fentanyl into our country, that was the reason for this tariff,” Leavitt stated outside the White House, as reported by The Guardian.

Chinese Foreign Ministry spokesperson Lin Jian stated that China would take “necessary measures” to protect its companies, urging the U.S. to “stop politicizing economic and trade issues and using them as a tool, and to stop unreasonably suppressing Chinese companies,” as reported by The Associated Press.

As the situation evolves, businesses and consumers alike are advised to stay informed about further changes in international shipping policies and to consider alternative logistics solutions where feasible. The USPS has not provided a timeline for lifting the suspension, indicating that it will remain in place until further notice.