The U.S. Postal Service has announced a temporary suspension of all incoming packages from China and Hong Kong, effective immediately. This decision comes after President Donald Trump signed executive orders imposing tariffs on several countries, including China. The suspension specifically applies to packages, while letters and large envelopes from China and Hong Kong will not be affected.
The executive orders also eliminate the de minimis provision, which allowed duty-free shipments of packages valued at less than $800. This provision was critical for Chinese e-commerce companies like Shein and Temu to offer low prices on a variety of goods in the U.S. The suspension of package shipments may lead to increased costs for sellers and higher prices for U.S. consumers.
There is uncertainty around whether the suspension applies to packages sent by private carriers from China and Hong Kong. Chinese e-commerce companies have previously stated that their business models do not solely rely on the de minimis provision, and they have opened distribution centers in the U.S. to store goods.
Lawmakers and trade officials have raised concerns about the de minimis loophole allowing illicit drugs to enter the U.S. through the mail. Trade organizations have urged Trump to restrict de minimis shipments. The impact of the suspension on Chinese e-commerce growth in the U.S. remains to be seen, but companies have been adapting by opening U.S. warehouses for domestic distribution.
Note: The image is for illustrative purposes only and is not the original image associated with the presented article. Due to copyright reasons, we are unable to use the original images. However, you can still enjoy the accurate and up-to-date content and information provided.