HONG KONG — A day after announcing a ban on all incoming packages from China and Hong Kong, the U.S. Postal Service has decided to reverse that decision. The initial announcement, made on Tuesday, indicated that due to the U.S. implementing an additional 10% tariff on Chinese products and ending a customs exception for lower-value parcels, the Postal Service would halt accepting packages from these regions.
On Wednesday, the Postal Service stated it would resume accepting international mail and packages from China and Hong Kong without providing a clear rationale for the reversal. They indicated a commitment to collaborate with Customs and Border Protection to establish a collection method for the new tariffs, in an effort to maintain steady delivery services. When questioned about the specifics of the sudden change, the Postal Service referred only to a brief statement and did not provide additional details.
The initial ban was poised to cause significant upheaval for popular online retailers such as Shein and Temu, which cater to younger consumers seeking affordable apparel and other items frequently shipped directly from China. The ease of direct postal services has allowed these businesses to keep prices competitive, relying heavily on the previous “de minimis” exemption that permitted tax-free shipments valued under $800.
Had the Postal Service enacted the suspension, it would likely have led to delays in receiving packages and an increase in costs for retailers that depend on low prices for extensive sales.
What did the USPS announce? Just a day after it declared the halt on inbound parcels from China and Hong Kong, the U.S. Postal Service affirmed that it would “continue accepting all international inbound mail and packages from China and Hong Kong.” Notably, the brief ban did not extend to letters and flats, which include mail that measures up to 15 inches long or 0.75 inches thick.
Why did it occur? Although the USPS did not clarify its reasoning for the initial ban, the timing coincided with former President Trump’s revocation of the “de minimis” customs exemption for China, essentially removing the ability for shoppers to evade duties on packages valued below $800. This change was part of an executive order that introduced the new 10% tariff on Chinese imports.
Previously, U.S. Customs and Border Protection noted that it manages an average of over 4 million “de minimis” imports weekly. They also did not explain the subsequent decision to reverse the ban and did not respond promptly to further inquiries regarding the matter.
What’s expected going forward? With the newly implemented tariffs, experts predict consumers will face increased prices and potential delays in shipments from major retailers like Shein and Temu. According to a report from the Congressional Research Service released last week, Chinese exports of low-value packages surged to $66 billion in 2023, a significant increase from $5.3 billion in 2018. In the U.S., Temu, owned by China’s PDD Holdings, along with Shein, represents approximately 17% of the discount sector for fast-fashion items and various consumer goods.
Alibaba’s platform, AliExpress, has also taken advantage of this trade loophole. Neil Saunders, a managing director at GlobalData, highlighted that some businesses utilizing Shopify and other e-commerce services, including Etsy, ship directly from China. Amazon has adapted similarly for some products sold through Amazon Haul, a budget-friendly online store intended to enhance competition with Shein and Temu, which have capitalized on the benefits of the de minimis rule.
Both Shein and Temu have not provided immediate commentary on the changes made by the USPS. According to its website, Temu collaborates with private shipping firms like FedEx and UPS, while Shein informs customers they can return items through USPS and FedEx.
Overall, the United States imported approximately $427 billion worth of goods from China in 2023, as noted by the U.S. Census Bureau, with consumer electronics—including cellphones and computers—making up the largest import categories.
