-
The US Postal Service lifted – after only a day — the ban on entry of packages from China and Hong Kong
-
USPS on February 4 initiated the temporary suspension but in a statement on Feb 5 said it would “continue accepting all international inbound mail and packages from China and Hong Kong”
-
The suspension announcement follows the Trump administration’s decision to end the popular trade loophole — de minimis — which allowed US shoppers to avoid paying tariffs on shipments worth less than $800
The US Postal Service (USPS) has lifted – after only a day — the ban on entry of packages from China and Hong Kong.
USPS on February 4 initiated the temporary suspension but in a statement on Feb 5 said it would “continue accepting all international inbound mail and packages from China and Hong Kong.”
It added: “The USPS and Customs and Border Protection are working closely together to implement an efficient collection mechanism for the new China tariffs to ensure the least disruption to package delivery.”
The suspension announcement follows the Trump administration’s decision to end the popular trade loophole — de minimis — which allowed US shoppers to avoid paying tariffs on shipments worth less than $800. The exemption was eliminated as part of an executive order signed by President Donald Trump on February 1 raising tariffs on Chinese goods by 10%.
The suspension would have meant that packages from China will be subject to all US duties—not just the new 10% tariff imposed on Chinese imports.
The change would have impacted the likes of e-commerce giants Shein and Temu that ship low-value packages duty-free to the US. It would not affect the flow of letters and “flat” mail from China and Hong Kong.
Temu and Shein have over the years grown rapidly because of the de minimis exemption. The two companies account for more than 30% of all packages shipped to the US daily under the de minimis provision, according to a US Congressional committee on China report in 2023.
Amazon also has a large seller base in China, with e-commerce consultancy Marketplace Place estimating that about half of China-based sellers comprise half of the top 10,000 sellers in Amazon.
In November, last year, the company set up Amazon Haul to compete with Temu and Shein, allowing shoppers to buy $5 handbags and $10 sweaters from China-based sellers.
The removal of the de minimis exemption is an attempt at addressing the threat posed by illegal aliens and drugs, including fentanyl, a deadly synthetic drug. Trump had said China was not doing enough to end the flow of fentanyl from entering the US. Previous reports say Chinese suppliers were using the duty-free provision to export chemicals used to make fentanyl by disguising them as gadgets and other low-priced goods.
Last year, the US imported around four million de minimis packages every day.