US postal service suspends China, Hong Kong parcels amid growing tensions

Chinese exports to the US are hit hardest by the new suspension, affecting billions of low-cost packages.

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The United States Postal Service (USPS) has suspended the acceptance of international parcels from China and Hong Kong, effective immediately, with no indication of when the suspension will end.

This move is expected to severely impact global e-commerce giants such as Shein and Temu.

The USPS clarified that the suspension specifically affects parcels and will not interfere with the delivery of letters. However, the postal service has provided no specific reasoning behind the decision.

This announcement comes shortly after US President Donald Trump signed an executive order terminating the “de minimis” exemption, a policy that had previously allowed packages valued under $800 to enter the US without facing duties or inspections.

The impact of this suspension is felt most acutely by e-commerce companies like Shein and Temu, which have built massive businesses by leveraging the de minimis exemption. Many of these companies rely on shipping large volumes of low-cost goods from China to US consumers.

According to Reuters, almost half of the parcels benefiting from this exemption come from China, meaning the suspension could disrupt billions of dollars in business.

Adding to the growing tensions, a 10% tariff on Chinese imports took effect on Tuesday, intensifying trade disputes between the US and China.

In retaliation, China has implemented its own set of tariffs on US goods, including coal, crude oil, and agricultural machinery, with additional penalties targeting US tech companies. These measures are scheduled to come into effect on February 10.

Although the USPS has not confirmed whether the parcel suspension is linked to the new executive order, experts have pointed out that this move could lead to delays in package deliveries as each parcel may now need to undergo inspections by US Customs and Border Protection.

While customs agents already have the authority to inspect international packages, the suspension raises concerns that the process will become significantly slower.

The suspension also coincides with heightened tensions between the US and China, with both countries retaliating against each other’s trade measures.

China’s retaliatory actions have included placing two US companies—Illumina, a biotech firm, and PVH Group, a fashion retailer—on its "unreliable entities list."

At present, the USPS has not indicated when it plans to resume accepting parcels from China and Hong Kong, leaving consumers and businesses in limbo regarding the status of their shipments.

This disruption underscores the far-reaching consequences of the ongoing trade conflict between the two global superpowers and its potential impact on e-commerce and international shipping channels.