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US Postal Service ceases China parcel shipments due to new tariffs

Deepshikha Maan, Jadetimes Staff

D. Maan is a Jadetimes news reporter covering Asia

 
Image Source : Getty Images
Image Source : Getty Images

US Postal Service Suspends China Parcel Deliveries Amid Tariff Changes

USPS Halts Parcel Shipments from China and Hong Kong


The United States Postal Service (USPS) has announced a suspension of parcel shipments from mainland China and Hong Kong until further notice. However, letter mail remains unaffected. While USPS has not provided an official reason for this decision, it coincides with recent tariff changes affecting small package imports.


Closure of the De Minimis Tax Loophole


On Tuesday, new regulations took effect, closing a long standing loophole that allowed small packages valued at $800 or less to enter the U.S. without taxes or fees. This exemption had been widely utilized by Chinese e-commerce platforms such as Shein and Temu to reach American consumers.


Trump’s New Tariffs on Chinese Imports


As part of recent trade measures, former President Donald Trump imposed an additional 10% tariff on all goods imported from China, including fashion items and toys. While changes to the de minimis tax exemption were already underway during President Joe Biden’s administration, Trump’s announcement significantly expanded tariff coverage.


China’s Retaliatory Tariffs on U.S. Goods


In response to the new U.S. trade restrictions, China has announced its own set of tariffs on American imports. Starting February 10, coal and liquefied natural gas (LNG) will be subject to a 15% tariff, while crude oil, agricultural machinery, and large-engine cars will face a 10% levy. Trump is expected to engage in discussions with Chinese President Xi Jinping in the coming days.


Impact on E-Commerce and Trade Relations


Trade experts highlight that these tariff adjustments will have a significant impact on e-commerce shipments from China to the U.S. A 2023 report by the U.S. Congress revealed that nearly half of all de minimis exempt parcels entering the U.S. originated from China. Officials have expressed concerns that the high volume of these shipments has made it increasingly difficult to screen for illegal goods.

This policy shift marks a significant change in U.S. China trade relations, potentially reshaping cross border e-commerce and parcel shipping dynamics.

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