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USPS temporarily halts certain incoming packages from China and Hong Kong


The U.S. Postal Service has temporarily suspended all inbound packages from China and Hong Kong Posts, effective immediately. This decision comes after President Trump signed executive orders imposing tariffs on several countries, including a provision that eliminates the de minimis loophole allowing duty-free shipments under $800. Chinese e-commerce firms like Shein and Temu, who heavily rely on this loophole, may be impacted by the suspension.

The U.S. processed over 1.3 billion de minimis shipments in 2024, with Temu and Shein accounting for a significant portion of packages shipped to the U.S. via this provision. The suspension of inbound packages from China and Hong Kong may lead to increased costs for sellers and higher prices for U.S. consumers, as these firms depend on USPS for last-mile deliveries.

Trade officials and lawmakers argue that de minimis imports give Chinese companies an unfair advantage, as minimal documentation and inspection make it easy for illicit substances like fentanyl to enter the U.S. Trump’s decision to curb de minimis shipments has raised concerns about the future growth of Chinese e-commerce platforms in the U.S. However, companies like Temu and Shein have said they are not solely reliant on this provision and have opened distribution centers in the U.S. to store goods locally.

The trend of opening U.S. warehouses for domestic distribution has increased as e-commerce companies seek to mitigate the impact of trade restrictions. Despite the uncertainty surrounding the suspension of inbound packages, Chinese e-commerce firms are adapting their business models to ensure continued growth in the U.S. market.

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