USPS Suspends Accepting China Parcels Following New Tariff Regulations

The USPS has announced a suspension of parcel acceptance from mainland China and Hong Kong, citing new tariff regulations that aim to close previously exploited loopholes affecting e-commerce shipments.

In a significant shift in postal policy, the United States Postal Service (USPS) has announced the suspension of parcel deliveries from mainland China and Hong Kong until further notice, although letters will still be processed. This decision follows the implementation of new rules aimed at closing a loophole that allowed small packages valued at $800 (£641) or less to enter the U.S. without incurring taxes or fees. The change, implemented under President Donald Trump’s administration, is part of a larger strategy to impose a 10% tariff on all goods imported from China.

The so-called de minimis tax loophole had come under increased scrutiny in recent years, especially as Chinese e-commerce giants like Shein and Temu capitalized on it to ship goods to U.S. customers without paying any customs duties. The effort to amend the tax exemption had already been in progress under President Joe Biden before Trump took office, but new tariffs have heightened concerns about the degree of trade impacting American retailers.

Industry leaders, such as Nick Stowe, Chief Executive of Monsoon & Accessorize, have expressed support for the new changes arguing that they would help level the playing field for retailers in the U.S., UK, and Europe. Stowe noted that Shein's ability to exploit the loophole had hindered competition.

Further complicating the situation, President Trump recently indicated that he is in "no rush" to engage in discussions with Chinese President Xi Jinping. The new tariffs create a stringent economic environment, particularly affecting e-commerce parcels shipped directly from China to the U.S., as highlighted by trade expert Deborah Elms. According to a report from Congress in 2023, approximately half of the parcels entering the U.S. under these de minimis exemptions originated from China, underscoring the challenge of screening these packages for illegal goods.

As questions arise around the operational impacts of these policy changes, USPS has been contacted for more clarification regarding the halt on Chinese parcels.