In a move that briefly disrupted the flow of international parcels, the United States Postal Service (USPS) temporarily suspended the acceptance of packages from China and Hong Kong. The suspension, which took effect on Tuesday, follows the recent imposition of new trade restrictions by President Donald Trump that could significantly affect major retail players, including fast-fashion giant Shein and online discount store Temu.
The USPS clarified that the temporary suspension would not impact the delivery of letters or smaller “flats”—mail items that are up to 15 inches long and no thicker than ¾ inches—from these regions. However, the suspension did affect larger international packages, prompting concerns for shoppers and retailers reliant on affordable imports.
The suspension came in the wake of President Trump’s new tariff measures, including an additional 10% tariff on Chinese goods, and the removal of the “de minimis” exemption, which previously allowed US consumers to avoid paying tariffs on shipments valued below $800. This change is poised to increase the costs of goods from China and Hong Kong, particularly impacting online shopping platforms like Shein and Temu, which have gained popularity for their cheap clothing and diverse range of products.
Temporary Suspension Lifted
By Wednesday morning, the USPS reversed its position, announcing that it would once again accept all international packages from China and Hong Kong. While no specific reason was given for the initial suspension, the quick policy change came after the growing concern over the potential disruption to the thriving e-commerce trade between China and the US.
The temporary halt in parcel shipments would have caused uncertainty for millions of online shoppers waiting for their orders from popular retailers such as Shein and Temu. These companies have become household names, especially among younger American consumers, due to their low-cost offerings and the ease of having items shipped directly from China.
Ram Ben Tzion, founder of Ultra Information Solution, a company behind digital shipment vetting platform Publican, commented on the impact, saying, “This is huge… People waiting for orders from Amazon, Shein, and Temu have no way of knowing when they can receive those orders.”
Impact on Retail Giants
Shein and Temu, both of which have surged in popularity in the US, were particularly vulnerable to the suspension. According to a report from the US Congressional Committee on China in June 2023, the two companies are believed to account for more than 30% of all packages shipped to the US each day under the now-eliminated “de minimis” provision.
This change in policy could potentially drive up the prices of Shein and Temu products, making them less attractive to consumers who were drawn to the platforms for their affordability. Shein, for instance, is known for offering inexpensive clothing, while Temu offers a wide array of discounted products, from toys to electronics. Without the exemption, these products would be subject to higher tariffs, ultimately raising the final cost to US shoppers.
Despite these tariff increases, experts have indicated that the overall shipment volumes are unlikely to be dramatically affected. US Customs and Border Protection (CBP) had previously reported that it processes over four million “de minimis” imports each week, but the change may result in greater scrutiny of smaller packages.
Preparing for Change
Logistics companies, such as Easyship, had already warned clients shipping goods from China to the US about the potential impact of increased tariff scrutiny. They advised businesses to consider setting up distribution centers within the US or partnering with local warehouses and fulfillment centers to circumvent the new trade restrictions.
While the USPS has resumed processing international packages, the broader implications of the new tariffs remain a concern for many in the e-commerce sector. As Shein, Temu, and other similar platforms continue to rely on affordable Chinese imports, the long-term effects of these changes on pricing and shipping logistics are yet to be fully realized.
As the situation evolves, both retailers and consumers will need to adapt to the shifting landscape of international trade and postal services.
Source: New York Post
