The U.S. Postal Service has temporarily suspended all inbound packages from China and Hong Kong Posts until further notice, effective immediately. This change comes after President Trump imposed tariffs on China, Mexico, and Canada. A provision in the executive orders eliminates the “de minimis” loophole, which allows duty-free shipments of packages worth less than $800 into the U.S. This provision has been crucial for Chinese e-commerce firms like Shein and Temu, who are major users of the loophole. China Post and Hong Kong Post are government-operated postal services, and it is unclear if the suspension applies to packages sent via private carriers.
Cross-border e-commerce companies, who rely on USPS for 31% of last-mile deliveries, are likely to face increased costs and higher prices for U.S. consumers due to this suspension. Lawmakers and trade officials have argued that de minimis imports give Chinese companies an unfair advantage and allow illicit drugs to enter the U.S. through the mail. Despite the potential impact on Chinese e-commerce platforms, companies like Shein and Temu have stated that their business models do not rely on de minimis and have opened distribution centers in the U.S.
The trend of opening U.S. warehouses for domestic distribution has been growing as major e-commerce companies seek to mitigate trade restrictions. This move has led to a surge in demand for warehouse space in locations like Los Angeles. Overall, the suspension of inbound packages from China and Hong Kong could have significant implications for the e-commerce industry and trade relations between the U.S. and China.
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