TLDR:
- USPS has temporarily suspended incoming packages from China and Hong Kong, affecting major retailers like Shein and Temu
- The suspension coincides with Trump’s removal of the “de minimis” rule that allowed duty-free entry for packages under $800
- Chinese e-commerce stocks dropped in response, with JD.com falling over 5% and Alibaba declining more than 2%
- The impact may be limited as many companies have already shifted away from USPS to private carriers in recent years
- The move comes amid broader concerns about illicit drug trafficking and ongoing US-China trade tensions
The United States Postal Service has announced a temporary suspension of inbound international packages from China and Hong Kong, creating potential delays for customers of popular retailers like Shein and Temu. The suspension took effect as the US implemented new trade measures affecting Chinese imports.
The timing of the suspension aligns with President Donald Trump’s recent decision to remove the “de minimis” rule for China, which previously allowed packages valued under $800 to enter the United States without duties. The rule change introduced a new 10% tariff on goods from China and Hong Kong, beginning Tuesday at midnight Washington time.
The announcement had an immediate impact on Asian markets, particularly affecting Chinese e-commerce companies. JD.com experienced a sharp decline of more than 5% in its stock price, while Alibaba Group Holding Ltd. saw its shares fall by more than 2% in Hong Kong trading.
The volume of packages entering the US under the de minimis rule has grown rapidly in recent years. According to US Customs and Border Protection, the total number of such shipments reached 1.4 billion packages in fiscal year 2024, roughly double the amount recorded in 2022.
The suspension affects only parcels, with letters and flat mail from China and Hong Kong continuing to move through the postal system normally. The USPS has not provided specific details about the reasons behind the suspension, and both the postal service spokesperson and White House have declined to elaborate on the announcement.
Market analysts suggest the actual impact of the suspension may be less severe than initial reactions suggest. Many companies have already moved away from using USPS for international shipping in recent years, turning instead to private carriers like UPS and FedEx.
This shift is reflected in USPS statistics, which show a dramatic decrease in international mail volume. The postal service’s annual handling of inbound international mail dropped from over 600 million pieces in 2017 to fewer than 200 million pieces in 2022, according to a 2024 Government Accountability Office report.
The suspension comes as Washington increases scrutiny of a shipping loophole that companies like Temu and Shein have utilized to expand their US presence. Critics argue that the high volume of small packages from China has made it difficult to track potentially dangerous or illegal goods entering the country.
The change in postal services coincides with broader concerns about illicit drug trafficking. White House trade adviser Peter Navarro has pointed to parcel mail as a potential gateway for drug smuggling, including fentanyl, from China both directly and through third-party countries.
For postal workers, the removal of the de minimis rule presents new challenges. According to Morningstar senior equity analyst Chelsey Tam, the system processed approximately 4 million de minimis packages daily in 2024, making it difficult to implement new tariff rules effectively.
The suspension has attracted attention from market analysts who see it as part of a larger pattern in US-China relations. Nick Twidale, chief analyst at AT Global Markets in Sydney, suggests this could indicate an escalation in trade tensions between the two countries.
Bloomberg Intelligence analyst Marvin Chen characterizes the move as “more symbolic,” noting that most parcels are now delivered by private shipping companies rather than postal services.
The suspension remains in place as discussions continue between the US and China. While Trump has mentioned the possibility of speaking with Chinese leadership, no specific details about potential negotiations have been confirmed.
The latest development shows that while the USPS ban affects the postal service’s traditional role in handling international packages, alternative shipping channels through private carriers remain operational for Chinese retailers serving US customers.
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