The United States Postal Service (USPS) declared that, with immediate effect and until further notice, it will no longer accept incoming international packages from China and Hong Kong.
USPS has not offered a formal explanation for the stoppage, which comes after US President Donald Trump imposed new trade restrictions. The USPS said in a statement that this halt will not impact letter deliveries.
Trump’s executive order that ended the “de minimis” exception for low-value goods, a long-standing practice that exempted packages valued at $800 or less from taxes and inspections comes just days after the action.
Low-cost imports have been made easier by the de minimis rule, particularly from Chinese e-commerce behemoths like Shein and Temu, which have benefited greatly from this loophole and grown rapidly.
Millions of these packages would probably be impacted by the decision to remove the duty-free exemption, which will have an effect on both customers and e-commerce companies.
Following Trump’s executive order that eliminated the de minimis criterion and put a 10% duty on all imports from China, which went into force on Tuesday, parcel acceptance has been suspended. The administration’s larger plan to correct economic imbalances with China and prevent the import of illegal commodities, such as fentanyl, includes this directive.
The new regulations will now make low-value goods subject to the same scrutiny as higher-value imports by requiring comprehensive information and the payment of tariffs on these packages.
Experts warn that the increased number of parcel inspections may cause major shipment delays, even though the USPS has not directly connected the suspension to these new rules.
The sheer volume of international shipments is already putting a burden on Customs and Border Protection (CBP), which oversees the inspection of parcels entering the nation; the policy shift is anticipated to put even more demand on its resources.
FedEx and UPS, who handle a large number of these low-value packages, have also voiced worries about possible delays and supply chain interruptions as a result of the changes.
New rules may provide difficulties for e-commerce businesses like Temu and Shein. Cross-border purchasing may be hampered by these changes, particularly for American consumers who rely on inexpensive goods from other nations.
Amazon could also be impacted, although it has not yet publicly commented on the situation.
