02-4-2025, 9:06 PM

The US Postal Service has suspended incoming parcels from China and Hong Kong

The US Postal Service / Video Screenshot

The US Postal Service reported on Tuesday that it has temporarily ceased receiving shipments from China and Hong Kong, just hours after President Trump issued an order ending duty-free processing of many of these items.

The announcement comes just days after US President Donald Trump issued an executive order terminating the "de minimis" exemption, a long-standing rule that allowed anyone, including exporters, to ship packages worth less than $800 to the United States without paying duties or undergoing inspections.

Currently, US Customs and Border Protection has the ability to examine and inspect all foreign parcels, however they do not open every item.

The new law is expected to have an impact on e-commerce companies such as Shein and Temu, who have developed massive business models around this exception. The eased limitations and tax exemptions on low-cost products have allowed more than a billion shipments to enter the United States at low rates for consumers searching for bargains on apparel and home items.

The Trump administration and other de minimis critics argued that the trade provision could make it easier to ship drugs and precursors into the United States because exporters who use de minimis do not have to provide as much information to US Customs and Border Protection as they would otherwise.

According to Neil Saunders, managing director of GlobalData Retail, a research and consultancy business, the decision to suspend international deliveries from China and Hong Kong would have the largest impact on marketplaces such as Shein, Temu, and, to a lesser extent, Amazon.

“They are the ones putting millions of packages into the system each week,” Mr. Saunders said in an interview. “That route has now been cut off at least temporarily.”

It may effect consumers who have already placed purchases, as well as future shipments from firms who rely on the United States Postal Service to deliver their items to clients. They would have to find alternatives such as UPS and FedEx, who are expected to face increased demand and may seek higher pricing.

FedEx and UPS transport a significant share of de minimis goods, with frequent cargo flights from China to the United States. Neither firm has replied to queries about how they would implement the new guidelines.

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