All inbound packages from China and Hong Kong have been suspended by the U.S. Postal Service (USPS) “until further notice,” a statement released by the carrier Tuesday night confirmed.
The move comes after the U.S. imposed an additional 10 percent tariff on Chinese goods and ended a customs loophole allowing small value parcels to enter the U.S. without paying tax, as Breitbart News reported.
The “de minimis” customs exemption allowed shoppers and importers to avoid duties on packages worth below $800.
The popular loophole has also been cited as a key element in the fentanyl smuggling industry, allowing small shipments of precursor chemicals to glide past customs inspectors with minimal scrutiny.
U.S. Customs and Border Protection previously stated it processes an average of over four million “de minimis” imports each week.
AP reports this move is likely to impact Chinese e-commerce firms like Shein and Temu, although Shein is likely to be more affected, according to Jacob Cooke, CEO of e-commerce marketing agency WPIC Marketing + Technologies.
Both companies have significant market share in the U.S.
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“Compared to Temu, Shein relies more heavily on USPS for direct-to-consumer shipping from China, and without this channel, it will have to rely more on private carriers,” said Cooke.
“That will increase logistics costs, which along with the recent scrapping of the de minimis exemption for most products from China, could erode its price advantage.”
The USPS statement called it a “temporary service disruption,” without providing an explanation:
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,” according to the statement. “Note the flow of letters and flats from China and Hong Kong will not be impacted.
Letters and flats — mail that measures up to 15 inches long or 3/4 inches thick — will remain free of restrictions.
Asked about the suspension at a regular news briefing on Wednesday, AFP reports China’s foreign ministry said “as a matter of principle… we urge the United States to stop politicising trade and economic issues and using them as tools, and to stop the unreasonable suppression of Chinese companies.”
Spokesman Lin Jian added China would “continue to take necessary measures to resolutely safeguard the legitimate rights and interests of Chinese companies.”
