The United States Postal Service announced on Tuesday that it is temporarily halting all inbound packages from China and Hong Kong.
This suspension, effective immediately, will remain in place “until further notice,” according to CNBC.
However, letters and large envelopes (referred to as “flats”) sent from China and Hong Kong will not be impacted, according to the USPS.
The announcement follows President Donald Trump’s signing of executive orders on Saturday that introduced tariffs on China, Mexico, and Canada.
On Monday, Trump agreed to delay the imposition of a 25% tariff on goods from Canada and Mexico for 30 days, but the additional 10% tariff on Chinese goods remains in effect.
A provision in the orders eliminates the “de minimis” loophole, which allows exporters to ship packages valued at less than $800 into the U.S. without paying duties.
This loophole has been vital for Chinese e-commerce companies like Shein and PDD Holdings’ Temu, enabling them to expand their U.S. market by offering deeply discounted products, including clothing, furniture, electronics, and home decor.
In 2024, the U.S. processed over 1.3 billion de minimis shipments, according to data from U.S. Customs and Border Protection.
A 2023 report from the U.S. House’s Select Committee on the Chinese Communist Party found that Temu and Shein are “likely responsible” for more than 30% of all packages shipped to the U.S. under this provision and nearly half of all de minimis shipments originating from China.
According to the president and CEO of consulting firm iMpact, Chris Pereira, cross-border e-commerce companies rely on USPS for about 31% of their last-mile deliveries. They also use various other shipping providers, such as DHL, FedEx, UPS, and smaller carriers.
USPS has “traditionally been a cost-effective option, especially for small sellers in China,” Pereira noted.
He added that the suspension could result in higher costs for sellers and ultimately lead to increased prices for U.S. consumers.
Trade organizations and advocacy groups have urged Trump to restrict de minimis shipments, arguing that the provision has facilitated the entry of illicit drugs, like fentanyl, into the United States through the mail.
Temu and Shein had previously stated that their business models do not depend on de minimis. Both companies have also established distribution centers in the U.S., enabling sellers in China to ship goods, store them in local warehouses, and streamline their delivery process.
The trend of opening U.S. warehouses for domestic distribution gained momentum last year as major e-commerce companies aimed to protect themselves from potential trade restrictions, according to Wen Biao, general manager of Shenzhen-based logistics company Qianhe Technology Logistics.
Biao mentioned that his company’s warehouse in Los Angeles experienced “explosive” demand, according to a CNBC translation of his remarks in Mandarin.
