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The US Postal Service is temporarily suspending the entry of parcels from China and Hong Kong
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The change 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
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Removing de minimis exemption will affect e-commerce giants Shein, Temu, and Amazon
The US Postal Service (USPS) has temporarily suspended the entry of parcels from China and Hong Kong.
A USPS notice said that “effective Feb. 4, the Postal Service will temporarily suspend only international package acceptance of inbound parcels from China and Hong Kong Posts until further notice.”
The change 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%.
This means that packages from China are now subject to all US duties—not just the new 10% tariff imposed on Chinese imports.
The change will impact the likes of e-commerce giants Shein and Temu that ship low-value packages duty-free to the US. It will 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.
Ram Ben Tzion, founder of Ultra Information Solution, said: “This is huge. People waiting for orders from Amazon, Shein, and Temu have no way of knowing when they can receive those orders.”
Tzion’s company is behind digital shipment vetting platform Publican. He added that he expects the ban “to be a short-term measure replaced by a longer-term measure that will be more measured.”
Last year, the US imported around four million de minimis packages ever day.
China’s foreign ministry called for dialogue and consultation between Beijing and Washington, saying reducing demand for drugs at home and enhancing law enforcement cooperation was the best way for the US to solve its fentanyl crisis.
International couriers such as FedEx and SF Express said they would continue to send packages to the US.
Trump’s crackdown is not seen to dramatically impact shipping volumes, according to experts.
Niall van de Wouw, chief airfreight officer at Xeneta, said e-commerce volumes out of China grew between 20 to 30% last year, “so it’s going to take a sledgehammer to crack that level of consumer demand.”
“I’m not sure de minimis alone is enough,” he added.
While prices of goods bought online may rise, it will still be cheaper than buying through retailers in the US.
Shein has previously stated that it supports reform of the de minimis provision.
Trump also said last week that he would impose 25% tariffs on goods from Canada and Mexico, but backtracked on that threat this week.
