HONG KONG – The US Postal Service has announced a temporary suspension of parcels originating from China and Hong Kong, following the recent termination of a trade provision by the US government. This change significantly impacts retailers, particularly those like Temu and Shein, that relied on duty-free shipping for low-value packages to the United States.
The additional 10% tariff imposed on Chinese goods took effect this week, prompting an immediate response from Beijing with countermeasures.
Moreover, the recent policy shift means the elimination of the “de minimis” exemption, allowing US consumers to bypass tariffs for shipments valued under $800.
The Chinese government has condemned this decision as “unreasonable suppression.” A foreign ministry spokesperson urged the US to cease politicizing trade and economic matters and to halt actions that unjustly target Chinese enterprises.
The recent tariff increase and the removal of de minimis come amid ongoing allegations that China has not sufficiently curbed the fentanyl crisis, which has become a focal point in US-China relations.
Industry experts warn that this development could leave consumers waiting indefinitely for their orders. “People awaiting deliveries from various retailers have no visibility on when to expect their items,” noted an industry analyst.
The USPS has clarified that this suspension will not affect letters and smaller mail items from these regions and is currently assessing the implications of the new taxes before resuming operations.
This move poses significant challenges to USPS, as they managed approximately 4 million de minimis packages daily prior to the changes, creating logistical hurdles in processing packages effectively.
At a local postal facility, frustration was palpable among businesses trying to track packages, highlighting the broader implications of this trade conflict on everyday operations.
Heightened Oversight
Logistics companies have warned clients who regularly ship low-value items to the US that they should prepare for increased scrutiny and consider establishing distribution centers or partnerships within the US for smoother operations.
Various international couriers have indicated they will continue shipping to the US, but the ramifications for fast-fashion giants like Shein and Temu—who thrived under the previous de minimis exemption—could be severe.
Reports suggest that these two companies accounted for over 30% of daily parcels arriving in the US that benefited from this exemption.
Industry insiders note that the transition to mandatory customs documentation will require significant adjustments for businesses accustomed to simpler processes.
Despite the challenges posed by the recent changes, expert opinions indicate that while prices may rise, the high demand for products from China remains resilient. “There’s substantial consumer demand that would likely withstand these regulatory adjustments,” noted a logistics officer.
Retailers such as Shein and Temu are already taking steps to adapt, including diversifying sourcing strategies and enhancing their logistics capabilities within the US market.
Additionally, the US is reportedly considering listing Shein and Temu on a government watchlist concerning labor practices, further complicating the landscape for these rapidly growing e-commerce platforms.
