The U.S. Postal Service (USPS) has announced an indefinite suspension of parcel shipments from mainland China and Hong Kong, a move that comes just as new tariff rules take effect under former President Donald Trump’s latest trade policies.
While USPS has not officially stated the reason for the suspension, the decision follows new regulations that closed a long-standing tax loophole allowing small packages valued under $800 (£641) to enter the U.S. duty-free.
The change, part of Trump’s broader strategy to curb Chinese imports, has particularly impacted e-commerce giants like Shein and Temu, which have leveraged the exemption to sell directly to millions of American consumers.
Trump’s latest trade measures, announced over the weekend, impose an additional 10% tariff on all Chinese imports, including fashion, electronics, and toys.
China has responded with its own set of tariffs, effective February 10, which include a 15% levy on U.S. coal and liquefied natural gas (LNG) and a 10% tariff on crude oil, agricultural machinery, and large-engine vehicles.
Trade expert Deborah Elms noted that Trump’s policy shift is expected to have an immediate impact on global supply chains.
“Trump’s tariff changes are especially sharp if goods were previously shipped via e-commerce directly from China to the U.S.,” Elms explained.
Nick Stowe, CEO of Monsoon & Accessorize, welcomed the U.S. crackdown on the de minimis exemption, arguing that it had given Chinese retailers an unfair advantage over competitors in the U.S., UK, and Europe.
“It has long been a complaint of UK, European, and U.S. retailers that Shein is exploiting this loophole, not paying customs duty, and has built a business at an industrial scale,” Stowe told BBC’s *Today* programme.
A 2023 U.S. Congressional report found that nearly half of all parcels entering the U.S. under de minimis exemptions originated from China. U.S. officials have also raised concerns that the sheer volume of shipments made it difficult to screen for counterfeit or illegal goods.
Trump is expected to speak with Chinese President Xi Jinping in the coming days as tensions over trade policy continue to escalate.
The BBC has reached out to USPS for further details on the parcel suspension.
