The U.S. Postal Service has announced the temporary suspension of all inbound packages from China and Hong Kong Posts until further notice. This decision comes after President Trump signed executive orders imposing tariffs on China, Mexico, and Canada. The orders eliminate the popular trade loophole known as “de minimis,” which allows packages worth less than $800 to be shipped into the U.S. duty free. Chinese e-commerce companies like Temu and Shein, which heavily rely on this loophole, are likely to be affected by the suspension. China and Hong Kong’s government-operated postal services may see a significant impact, although it remains unclear if the suspension applies to packages sent via private mail carriers.
The suspension could lead to increased costs for sellers and higher prices for U.S. consumers, as USPS is a cost-effective option for small sellers in China. Lawmakers argue that de minimis imports give Chinese companies an unfair advantage and have pushed for restrictions due to minimal documentation and inspection. Trade organizations and advocacy groups have raised concerns about illicit drugs entering the U.S. through the mail system. Chinese e-commerce platforms like Temu and Shein have begun opening distribution centers in the U.S. to store goods locally, mitigating the impact of the suspension. The trend of opening U.S. warehouses for domestic distribution has increased as companies seek to hedge against trade restrictions. The long-term implications of the suspension on Chinese e-commerce companies’ growth in the U.S. remain uncertain, but they are exploring alternative strategies to adapt to the changing trade landscape.
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