U.S. Postal Service suspends Inbound International Packages From China And Hong Kong

     The U.S. Postal Service (USPS) has suspended all inbound international packages from China and Hong Kong effective February 4, 2025, citing recent trade policy changes under the Trump administration1. The move follows President Donald Trump’s executive order imposing a 10% tariff on Chinese imports and eliminating the “de minimis” exemption, which previously allowed duty-free entry for packages valued under $800. While letters and flat mail remain unaffected, the suspension disrupts a critical shipping channel for Chinese e-commerce giants like Shein and Temu, which rely on low-cost USPS deliveries to maintain competitive pricing.

1. Higher Costs and Delays

• Shoppers may face longer wait times and increased prices as companies pivot to pricier private carriers like FedEx or DHL.
• The elimination of the de minimis rule introduces new tariffs on previously exempt low-value goods, potentially raising costs for items like fast fashion and electronics.

2. Supply Chain Disruptions

• Platforms like Shein and Temu, which ship ~30% of U.S.-bound de minimis packages, could see order cancellations or inventory shortages due to reliance on direct-from-China logistics.
• Small businesses using dropshipping models may struggle to find alternative fulfillment options.

3. Strategic Shifts by Retailers

• Companies are exploring workarounds, including expanding U.S. warehouses and bulk-shipping goods domestically. Temu’s semi-consignment model may better absorb costs compared to Shein’s direct-to-consumer approach.

• U.S. Motivations: The suspension aligns with efforts to curb illicit goods (e.g., fentanyl precursors) and address trade imbalances.
• China’s Retaliation: Beijing imposed retaliatory tariffs on U.S. coal, LNG, crude oil, and agricultural machinery.

• Duration: USPS has not specified when service will resume, though experts predict prolonged disruptions as customs adapts to heightened inspections.
• Direct Link to Tariffs: While timing suggests a connection, USPS has not officially tied the suspension to Trump’s executive order.

     For now, consumers reliant on affordable Chinese imports should brace for costlier, slower deliveries as the U.S.-China trade rift intensifies